Find the regression equation to predict annual salary

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Reference no: EM131810950

Question: Consider predicting annual salary from age, experience, and an interaction term.

a. Create a new variable, "interaction," by multiplying age by experience for each employee.

b. Find the regression equation to predict annual salary from age, experience, and interaction.

c. Test whether you have a significant interaction by using a t test for the regression coefficient of the interaction variable.

d. What is the average effect on annual salary of an extra year's experience for a 40-year-old employee? e. What is the average effect on annual salary of an extra year's experience for a 50-year-old employee? f. Interpret the interaction between age and experience by comparing your answers to parts d and e of this exercise.

Reference no: EM131810950

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