- A company is introducing a job evaluation scheme. Points ( \(x\) ) will be awarded to each job based on the qualifications and skills needed and the level of responsibility. Pay ( \(\pounds y\) ) will then be allocated to each job according to the number of points awarded.
Before the scheme is introduced, a random sample of 8 employees was taken and the linear regression equation of pay on points was \(y = 4.5 x - 47\)
- Describe the correlation between points and pay.
- Give an interpretation of the gradient of this regression line.
- Explain why this model might not be appropriate for all jobs in the company.