Question

A small company did an analysis of their pay scale versus years of experience and found that the line of best fit was y = 2035.6x + 36,000. What does the 2035.6 mean in context of the problem?

Answer 1

2035.6 is the slope of the regression line and represents the increase in payscale for every additional year of experience.

Explanation:

The relationship between the payscale and years of experience in the company is represented by the equation:

`\[y = 2035.6x + 36,000\]`

This is a linear regression model of the form

`\[y = mx + c\]`

where m is the slope of the regression line and c represents the intercept.

So in the original equation, 2035.6 corresponds to the slope of the regression line and represents the increase in payscale for every additional year of experience.