Solutions Statistics

In the following regression, X = weekly pay, Y = income tax withheld, and n = 35 McDonald's employee

Question: In the following regression, X = weekly pay, Y = income tax withheld, and n = 35 McDonald's employees. (a) Write the fitted regression equation. (b) State the degrees of freedom for a two- tailed test for zero slope, and use Appendix D to find the critical value at α = .05. (c) What is your conclusion about the slope? (d) Interpret the 95 percent confidence limits for the slope. (e) Verify that F = t² for the slope. (f) In your own words, describe the fit of this regression.

R2	0.202
Std. Error	6.816
n	35
ANOVA table
Source	SS		df	MS		F	p-value
Regression	387.6959		1	387.6959		8.35	.0068
Residual	1,533.0614		33	46.4564
Total	1,920.7573		34
Regression output								confidence interval
variables	coefficients	std. error			t (df =33)		p-value	95% lower	95% upper
Intercept	30.7963	6.4078			4.806		.0000	17.7595	43.8331
Slope	0.0343	0.0119			2.889		.0068	0.0101	0.0584