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

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 What is the regression equation? (10 pts) Y = bx + a

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)