Question: A statistician is interested in the relationship between the salary of graduates from a Master program at a university and the number of years after their graduation. Using data from a random survey with recent graduates, he performed the following simple linear regression model:

where the dependent variable (Y) is the salary of the graduates (measured in thousands of Australian dollars); the explanatory variable (X) is the number of years after graduation;

\({{\beta }_{0}}\) and \({{\beta }_{1}}\) are unknown parameters; and \(e\) is the disturbance term. The regression results are given in the following table.

1. What are the values of A, B? Explain your answer.
2. What conclusions can you reach about the relationship between salary and number of years after graduation?
3. What is the predicted salary for a person who just finished the degree? What is
   the predicted salary for a person who graduated 15 years ago? Are these predictions reliable? Justify your answers.
4. What assumptions have been employed in order to obtain these regression results?

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