The Solution:
Given:
[tex]y=16000+5500x[/tex]
a.
The explanatory variable is the number of years (x).
b.
The salary (y) when the number of years is 12 years.
[tex]y=16000+5500(12)=\text{ \$}82000[/tex]
c.
The annual salary when x = 6 years.
[tex]y=16000+5500(6)=\text{ \$}49000[/tex]
d.
The residual for someone who has completed high school education for 6 years.
Residual = actual y value − predicted y value.
[tex]Residual=46000-49000=-\text{\$}3000[/tex]
