An I/O psychologist would like to predict the salary of employees based on years of employment in the company. He took a small sample of employees, asked them their years of service and their annual salary (in thousands of dollars), and then computed the linear regression. Find the regression equation for the following data:

Years Employed	Annual Salary (thousands of $)
6	50
7	60
4	40
3	35
5	50
1	30
8	65
6	45
2	35
9	70

What is the regression equation? (10 pts)

Based on the regression equation, predict the annual salary of an employee with 5 years of employment. (2 pts)

Does the regression equation account for a significant portion of the variance of annual salary? (Hint: Compute F-ratio, .05.) (10 pts)