Question

A researcher at a large company has collected data on the beginning salary and current salary of 48 randomly selected employees. The least-squares regression equation for predicting their current salary from their beginning salary is = –2532.7 + 2.12x. The current salaries had a mean of $32,070 with a standard deviation of $15,300. The beginning salaries had a mean of $16,340 with a standard deviation of $5970. What is the correlation between current and beginning salary? Group of answer choices

Answer 1

0.8272

Explanation:

given equation –2532.7 + 2.12x.

The regression equation of y on x is given by

`Y= \bar{y} +b_(yx)(x-\bar{x})`

where b_yx = correlation(x,y)×sd(y)/sd(x)

Comparing the given equation with the above form

b_yx = 2.12

=> r(x,y)×sd(x)/sd(y) =2.12

=> r(x,y)×5970/15300 = 2.12

=> r(x,y) = .8272