Exhibit 14-6.A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates .The following table summarizes a portion of the regression results: Refer to Exhibit 14-6.The monthly salary of an employee that has worked for 48 months at the bank is closest to:
A)$441.
B)$785.
C)$1050.
D)$1226.

Question

Exhibit 14-6.A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates  .The following table summarizes a portion of the regression results:  Refer to Exhibit 14-6.The monthly salary of an employee that has worked for 48 months at the bank is closest to:
A)$441. 
B)$785. 
C)$1050. 
D)$1226.

Quizplus · Accepted Answer

We can use the regression equation to estimate the monthly salary of an employee with 48 months of service:

y = 318.70 + 24.68x

where x = 48.

Plugging in x = 48, we get:

y = 318.70 + 24.68(48) = $1,225.14

The closest answer choice is D, $1226.