Question 6 [25+ pts] An employee starts working in Year 1 with a salary of $50,000. Each year her salary increases by approximately 5%. By Year 20 she is earning $126,000. Aspects of a basic analysis are shown in the figure. [b] 100 120 Salary (#thousands) Residual 900 10 16 20 10 15 Yours of Employment Years of Employment (9) (d] 40 42 44 46 48 Residual Log salary -0015 -0005 0.003 15 20 10 15 Yours of Employment Yours of Employment Panel (a) shows a scatterplot of salary against year, with the least squares regression line. The value of r2 for these data is 0.9832 Panel (b) is a plot of the residuals against year. Panel (e) is a seat- terplot with the least-squares regression line for log salary against year. For this model, 2 = 0.0995. Panel (d) is a plot of the residuals for the model using year to predict log salary. (a) Describe the relationship between salary and year. (b) What percent of the variation in salary is explained by Year? Would you say that this is an indication of a strong linear rela- tionbship? Explain your answer. (c) Interpret the residual plot in panel (b). (d) Explain how the residual plot (panel (b)) highlights the devia