A researcher at a large company has collected data on the beginning salary and current salary of 48 randomly selected employees. The least-squares regression equation for predicting their current salary from their beginning salary is = –2532.7 + 2.12x. The current salaries had a mean of $32,070 with a standard deviation of $15,300. The beginning salaries had a mean of $16,340 with a standard deviation of $5970. What is the correlation between current and beginning salary? Group of answer choices
Accepted Solution
A:
Answer:0.8272Step-by-step explanation:given equation –2532.7 + 2.12x.The regression equation of y on x is given by
[tex]Y= \bar{y} +b_{yx}(x-\bar{x})[/tex] where b_yx = correlation(x,y)×sd(y)/sd(x)
Comparing the given equation with the above form
b_yx = 2.12
=> r(x,y)×sd(x)/sd(y) =2.12
=> r(x,y)×5970/15300 = 2.12
=> r(x,y) = .8272