For 60 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:
The correlation between and is equal to 0.52.
Estimate the expected amount of money spent for continuing education by a firm with 62 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 62 employees is then given by: