Hermes the bureaucrat has collected data on years of work experience and annual salaries from 500 different go-go 80's business guys in his home city of New New York. Work experience is measured to the nearest half-year, and annual salaries are measured in thousands of dollars. This data has been recorded and provided to you in the Assignment Data spreadsheet. Use this data to answer the following questions.

a)(C) Hermes would like to use this data to build a model to estimate the annual incomes of go-go 80's business guys based on years of work experience. Plot an appropriate graph based on the data provided. [2 marks]

b)(C) State the correlation between years of work experience and annual salary. You do not need to show any working for this part. [1 mark]

Turanga, one of Hermes' colleagues, has performed a linear regression on this data to assist Hermes.

c) (W) Turanga has found the values ofandto be 123.0978 and 6.1473 respectively. Explain what these numbers represent. [2 marks]

d) (W) Under Turanga's model, state explicitly the assumptions for the error term. By looking at the graph in part a), comment on the appropriateness of the use of a linear regression model. [2 marks]

(Hint: although not strictly necessary for this question, it may be useful to run a regression by yourself on this data)