Saint Louis College

City of San Fernando, La Union

GRADUATE SCHOOL

COURSE TITLE / NUMBER: STATISTICS / EDUC 203_C / PA 100

COURSE FACILITATOR: LEA L. DE GUZMAN, ED.D.
SUBMITTED BY: LAARNI GRACE F. MADAYAG

Worksheet No. 8
To determine the relationship between years of education and salary potential, 10
persons who have been employed for five (5) years were interviewed. The results
obtained in their number of years of higher education (college degree and higher)
and their monthly salaries are shown in the following table:

Years in Higher Monthly Salary in

Education (X) Thousands (Y)
4 21.4
4 18.7
5 27.5
8 42.0
1 12.6
5 25.3
10 55.5
4 17.3
8 48.8
1 14.0

Determine the salary potential of an individual who would spend 6 years in higher
education.

Graphical Method
Computation: where x =6
1. Plot the Points

Y
60
50
40
30
20
10
0
0 2 4 6 8 10 12
2. Draw the Trend Line

Y
60
50
40
30
20
10
0
0 2 4 6 8 10 12

3. Determine the corresponding value of Y when X = 6. In this case as per

graph, the value of y is approximately 33.

Estimate
Y
60
50
40
30
20
10
0
0 2 4 6 8 10 12

Algebraic Method
Formula:
Y’ = a + bx
(∑ Y)(∑ X2 ) − (∑ X)(∑ XY)
a = N (∑ X2 ) − (∑ X)2

𝑁(∑ XY) − (∑ X)(∑ Y)

b = N (∑ X2 ) − (∑ X)2

Where x =6
Computation:

Years in Monthly XY X^2 Y^2

Higher Salary in
Education (X) Thousands (Y)
4 21.4 85.6 16 457.96
 4 18.7 74.8 16 349.69
5 27.5 137.5 25 756.25
8 42.0 336 64 1764
1 12.6 12.6 1 158.76
5 25.3 126.5 25 640.09
10 55.5 555 100 3080.25
4 17.3 69.2 16 299.29
8 48.8 390.4 64 2381.44
1 14.0 14 1 196
50 283.1 1801.6 328 10083.73

(∑ Y)(∑ X2 ) − (∑ X)(∑ XY)

a = N (∑ X2 ) − (∑ X)2

(283.1)(328) − (50)(1801.6)
a = 10 (328) − (50)2

(92856.8) − (90080)
a = (3280) − 2500

2776.8
a =
780

a = 3.56

𝑁(∑ XY) − (∑ X)(∑ Y)

b = N (∑ X2 ) − (∑ X)2

10(1801.6) − (50)(283.1)
b =
10 (328) − (50)2

(18016) − (14155)
b = (3280) − 2500

3861
b =
780

b = 4.95

Y’ = a + bx
= 3.56 + 4.95 (6)
= 3.56 + 29.7
Y’ = 33.26

The salary potential of an individual who would spend 6 years in higher education is
33.26.