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Is There a Relationship Between the Raises Administrators at County (x)( x )

Question 91

Multiple Choice

Is there a relationship between the raises administrators at County University receive and their performance on the job?

A faculty group wants to determine whether job rating (x) ( x ) is a useful linear predictor of raise (y) . Consequently, the group considered the linear regression model
E(y) =β0+β1xE ( y ) = \beta _ { 0 } + \beta _ { 1 } x
The faculty group obtained the following prediction equation:
y^=14,0002,000x\hat { y } = 14,000 - 2,000 x
Which of the following statements about the model E(y) =β0+β1xE ( y ) = \beta _ { 0 } + \beta _ { 1 } x is correct?


A) The model hypothesizes that, on average, administrators make more money than professors.
B) The model hypothesizes that knowing an administrator's rating (x) ( x ) will determine exactly the administrator's raise (y) ( y ) .
C) The model hypothesizes that the raises for the administrators fall in a perfect straight line.
D) The model hypothesizes a line of means; as rating (x) ( x ) increases, the mean raise E(y) E ( y ) moves up or down along a straight line.

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