A DePaul statistician computes the following statistics from a random sample 
of tenured faculty from several Universities in Chicago:

        income: mean = $60,000; SD = $10,000 
        years of tenure: mean = 20 years; SD = 5 years 
        correlation between income and years of tenure = 0.8 

The statistician is interested in predicting income from years of tenure.

1. Derive and state the regression equation.

2. Interpret the coefficients of the regression equation. 

3. Interpret the correlation coefficient.