Is There a Relationship Between the Raises Administrators at State

Multiple Choice

Is there a relationship between the raises administrators at State University receive and their performance on the job? A faculty group wants to determine whether job rating (x) is a useful linear predictor of raise (y) . Consequently, the group considered the straight-line regression model, Using the method of least squares, the faculty group obtained the following prediction equation, Interpret the estimated y-intercept of the line.

A) The base administrator raise at State University is $14,000.
B) For a 1-point increase in an administrator's rating, we estimate the administrator's raise to increase $14,000.
C) There is no practical interpretation, since rating of 0 is nonsensical and outside the range of the sample data.
D) For an administrator who receives a rating of zero, we estimate his or her raise to be $14,000.