Question

A software company wants to know whether the job satisfaction levels of its programmers is linked to their salary levels. The company provides a written questionnaire to a sample of fifteen programmers to measure their job satisfaction levels on a scale of 1 to 10. The data are shown in the table below.

Job Satisfaction (1-10)	1	2	2	3	3	5	6	6	7	7	8	8	9	9	10
Annual Salary (in $1000)	22	20	23	34	38	24	22	34	36	27	33	27	38	39	40

1. Develop a regression equation relating job satisfaction to salary.
2. Predict the job satisfaction rating for someone with a salary of $30,000.

Answer 1

So the regression equation is :

y = 0.24x - 1.69

where x = Annual Salary , y = Job Satisfaction

job satisfaction rating for someone with a salary of $30,000.

x = 30

y = 0.24(30) - 1.69

y = 5.51