02 Jun Question 1. Find the predicted compensation with
Question
1. Find the predicted compensation with the productivity of 100. What is the residual for the observation of the base year, 1992?
2. Is there strong evidence that the compensation is linearly related to productivity? Justify your answer.
3. Find a 95% confidence interval for the slope parameter B2.
4. Is there strong evidence that B2 is greater than 0.65? Justify your answer using the level of significance alpha=0.05.
5. Find the 90% confidence interval for the mean compensation when the productivity is 85 and interpret the CI.
6. Find the 90% confidence interval for the compensation of a year when the productivity is 85 and interpret the CI.
7. Check the normality assumption.
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