# Scatterplot and simple linear regression

For a sample of 100 employees, a personnel director has collected data on x = the number of years an employee has been with the firma dn y = the number of shares of company stock the employee owns. With the following information:

a. Generate a scatter diagram that includes the best fit linear equation for these data.

b. Does there appear to be any relationship between the variables? If so, is the relationship direct or inverse?

c. Interpret the slope of the equation generated in part (a)

d. Viewing the scatter diagram and equation in par 9a) do you think there are any employees who appear to own an unusually high or low amount of stock compared to the ownership that the equation would have predicted?

Years Shares

15 340

16 450

14 470

15 310

17 450

8 440

12 440

5 800

6 340

20 50

9 510

16 260

12 330

15 360

5 290

11 200

12 280

4 0

14 230

20 400

6 360

13 110

17 540

16 320

16 500

3 210

10 390

8 230

6 60

16 300

11 290

8 250

19 470

10 310

15 380

13 530

12 370

6 170

8 230

11 500

17 510

11 330

11 260

17 490

20 410

20 630

9 250

8 210

18 280

9 410

12 380

12 370

3 210

16 410

3 50

9 160

18 470

10 320

9 250

9 180

14 300

5 350

11 380

7 70

12 280

19 380

6 150

19 600

20 420

3 130

7 130

3 50

18 480

6 130

14 420

5 150

7 160

14 380

7 90

8 160

13 480

4 240

18 490

7 260

3 120

20 720

5 220

19 450

18 510

9 310

9 280

8 310

7 130

12 380

19 620

4 70

7 310

20 820

9 250

20 500

https://brainmass.com/statistics/regression-analysis/scatterplot-and-simple-linear-regression-216359

#### Solution Preview

This solution shows a scatterplot with a regression equation ...

#### Solution Summary

This solution shows a scatterplot with a regression equation superimposed, along with an explanation of the plot anhd an interpretation of the regression equation. The plot was produced in Excel using the add-in MegaStat.