For 56 firms the number of employees and the amount of expenses for continuing education (in EUR) were recorded. The statistical summary of the data set is given by:
Variable | Variable | |
---|---|---|
Mean | 46 | 220 |
Variance | 140 | 1827 |
The correlation between and is equal to 0.61.
Estimate the expected amount of money spent for continuing education by a firm with 44 employees using least squares regression.
First, the regression line is determined. The regression coefficients are given by:
The estimated amount of money spent by a firm with 44 employees is then given by: