If Janice Position-Classification, personnel officer for the Bureau of Forms, can forecast agency separations 6 months from now, she can plan recruitment efforts to replace these people. Janice believes that separations 6 months from now are determined by the number of agency people passed over for promotion (X ₁ ), the number of agency people 64 years old or older (X ₂ ), and the ratio of government salaries to private sector salaries (X ₃ ). Using regression, Janice finds the following:

Y^ = 27.4 + .35X ₁ + .54X ₂ - 271X ₃

s _b1 = .0031 s _b2 = 0.136 s _b3 = 263 S _y|x = 54

R ² = .89 Adj. R ² = .85 N = 214

Write a one-page memo explaining the results, and then forecast the number of separations if 418 people are passed over for promotion, 327 people are 64 years old or older, and government salaries equal those in the private sector.