ABC Enterprises is a growing company in which employees must frequently travel for business. Currently, each employee is allotted 30 dollars each day to cover all meals. Employees have complained that this is not enough, especially when traveling to some of the more costly cities and countries. A survey was taken to get recommendations for a new allotment. Although not all responded, the response rate was good.
The company is trying to keep the most people happy with the meal allowance than it can. The vice president hypothesizes that the older employees are the ones who want more money for meals than the younger ones. We are going to look at whether or not there is evidence to support this claim. If the claim is true, then the company is thinking about having a smaller allowance and sending the younger employees out more than the older ones.
Open the Excel spreadsheet. Make sure are looking at the Week 7 tab. This includes the variable of age next to the requested dollar amount.
Create a scatter diagram with trendline from the data in that tab. Include the equation of the line on the graph (under “more options”) along with the r squared value (coefficient of determination). Include the diagram in your post.
What is a trendline, and how does it help us interpret the data?
Discuss the slope of that trendline. Is it positive, negative, undefined, or 0? What does it mean?
Use the trendline equation to figure out how much money a 36-year-old employee would want.
Use the trendline equation to figure out how much money an 84-year-old employee would want.
How much trust do you put into the answer for 5 and 6? How does the coefficient of determination and the simple correlation coefficient (r) provide you with some input on your response?
