For the data in given Exercise, find the standard error of estimate, then construct the 95% prediction interval for the amount of stock owned by an individual employee who has been with the firm for 5 years.
Exercise
For a sample of 8 employees, a personnel director has collected the following data on ownership of company stock versus years with the firm.
|
X = years
|
Y = shares
|
|
6
|
300
|
|
12
|
408
|
|
14
|
560
|
|
6
|
252
|
|
9
|
288
|
|
13
|
650
|
|
15
|
630
|
|
9
|
522
|
a. Determine the least-squares regression line and interpret its slope.
b. For an employee who has been with the firm 10 years, what is the predicted number of shares of stock owned?