Construct a scatter diagram and comment on the relationship, if any, between the variables Weekly Hoursand Weekly
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Question:
- Construct a scatter diagram and comment on the relationship, if any, between the variables Weekly Hoursand Weekly Earnings.
- Determine and interpret the correlation for hours worked and earnings. The CORREL function in Excel will be helpful. Based upon the value of the correlation, is your answer to the previous question reasonable?
- Based upon the data given, estimate the average weekly earnings for a workweek of 33.8 hours. How confident are you in your estimate?You should use a linear regression model to make your prediction. To create the linear regression model in Excel, right-click on a data point and click Add Trendline... In the options that display on the right, click Display Equation on chart.
- Increase/decrease in weekly hours: a) For a production worker who wishes to increase weekly earnings, would you recommend a decrease in hours worked per week? Why or why not? b) Does a decrease in hours worked cause an increase in weekly pay? c) What other variables could contribute to an increase in weekly pay?
The table below lists the average number of hours worked in a week and the average weekly earnings for U.S. production workers from 1967 to 1996. (The World Almanac 1998)
Year | Weekly Hour | Weekly Earnings |
---|---|---|
1967 | 38.0 | $101.84 |
1968 | 37.8 | $107.73 |
1969 | 37.7 | $114.61 |
1970 | 37.1 | $119.83 |
1971 | 36.9 | $127.31 |
1972 | 37.0 | $136.90 |
1973 | 36.9 | $145.39 |
1974 | 36.5 | $154.76 |
1975 | 36.1 | $163.53 |
1976 | 36.1 | $174.45 |
1977 | 36.0 | $189.00 |
1978 | 35.8 | $203.70 |
1979 | 35.7 | $219.91 |
1980 | 35.3 | $235.10 |
1981 | 35.2 | $255.20 |
1982 | 34.8 | $267.26 |
1983 | 35.0 | $280.70 |
1984 | 35.2 | $292.86 |
1985 | 34.9 | $299.09 |
1986 | 34.8 | $304.85 |
1987 | 34.8 | $312.50 |
1988 | 34.7 | $322.02 |
1989 | 34.6 | $334.24 |
1990 | 34.5 | $345.35 |
1991 | 34.3 | $353.98 |
1992 | 34.4 | $363.61 |
1993 | 34.5 | $373.64 |
1994 | 34.7 | $385.86 |
1995 | 34.5 | $394.34 |
1996 | 34.4 | $406.26 |
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