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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

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.

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