Question

Is there a relationship between years of seniority and base pay for the sample? The population? (Hint: Use a Scatter chart- the scatter chart is required and should be displayed for this question.) If you determine if there is a relationship comment if the relationship is linear, curvilinear or something else. Does it change as the values change? Discuss fully.

Answer 1

The relationship between years of seniority and base pay can be analyzed using a scatter plot, calculating the least-squares line, and finding the correlation coefficient.

Step-by-step explanation:

a. Using year as the independent variable and base pay as the dependent variable, you can draw a scatter plot of the data. The scatter plot will show the relationship between the two variables.

b. From inspection, if the scatter plot shows a clear pattern or trend, it indicates that there is a relationship between the variables. It could be linear, curvilinear, or something else.

c. The y-intercept, a, represents the base pay when the years of seniority is 0. It can have meaning depending on the context, for example, it could indicate the starting salary of a job.

d. To calculate the least-squares line, you need to find the equation in the form ŷ = a + bx. This equation represents the best-fit line that minimizes the sum of squared differences between the observed data points and the predicted values.

e. The correlation coefficient measures the strength and direction of the relationship between the variables. If the correlation coefficient is close to 1 or -1, it indicates a strong relationship. If it is close to 0, it indicates a weak or no relationship.