Chapter 14.4, Problem 34E

(a)

To determine

To calculate: The equation of the line that is the best fit for the data and the data for the year of service and the annual retirement for PepsiCo executives from 15 years to 45 years is tabulated below.

Years of service	Annual retirement
$25$	$\$109,280$
$30$	$121,130$
$35$	$132,990$
$40$	$145,490$
$45$	$160,790$

(b)

To determine

To calculate: The expected annual retirement benefits after 38 year of service and the data for the year of service and the annual retirement for PepsiCo executives from 15 years to 45 years is tabulated below.

Years of service	Annual retirement
$25$	$\$109,280$
$30$	$121,130$
$35$	$132,990$
$40$	$145,490$
$45$	$160,790$

(c)

To determine

To calculate: The slope of the linear regression line and interpret it and the data for the year of service and the annual retirement for PepsiCo executives from 15 years to 45 years is tabulated below.

Years of service	Annual retirement
$25$	$\$109,280$
$30$	$121,130$
$35$	$132,990$
$40$	$145,490$
$45$	$160,790$