Reference no: EM13800588

1. What is the degree of correlation between the dependent variable and the independent variable?

• 0.8198

• 0.6672

• 0.7862

• 0.6523

1. Does the regression model confirm a positive correlation between the dependent variable and the independent variable as hypothesized?

• Yes

• No

1. What is the desired statistical significance for the regression model?

• 0.00

• 0.01

• 0.05

• 0.10

1. Is the statistical significance of the model as a whole less than the desired statistical significance for the regression model?

• Yes

• No

1. What is the actual confidence level for the regression model as a whole?

• 99.97%

• 95%

• 90.5%

• 80.2%

1. Is the statistical significance of the linear relationship between the dependent and independent variables less than the desired statistical significance for the regression model?

• Yes

• No

1. Should the coefficient of determination or adjusted coefficient of determination be used to evaluate this regression model?

• Coefficient of determination

• Adjusted coefficient of determination

1. What percentage of the observed variation between the actual values of the dependent variable and the mean value of the dependent variable in the sample data set is explained by the regression model?

• 44.51%

• 66.72%

• 41.99%

• 76.24%

1. What is the amount by which we will be off on average when predicting values for the dependent variable using the regression model?

• $12,287

• $32,966

• $4,169

• $25,896

1. What is the coefficient for the y-intercept for the regression model?

• 39.38

• 19.94

• 12.29

• 2.96

1. What is the coefficient for the independent variable for the regression model?

• 63.08

• 4.52

• 12.29

• 2.96

1. What is the point estimate for the predicted salary for an employee with an average performance rating of 3.9?

• $71,562

• $57,006

• $41,299

• $50,896

1. What is the interval estimate for the predicted salary for an employee with an average performance rating of 3.9 based upon taking into consideration the standard error?

• $61,913 - $71,562

• $57,006 - $64,159

• $52,837 - $61,175

• $54,896 - $60,873

1. What is the 95% confidence level interval estimate for the salary for an employee with an average performance rating of 3.9?

• $60,265 - 85,789

• $75,412 - $78,523

• $40,636 - $73,376

• $65,141 - $72,269

Perform a correlation analysis between the dependent variable and each of the three independent variables. Use the results of the correlation analysis to answer questions 15 and 16.

1. Which independent variables evidence a positive correlation with the dependent variable?

• Average performance rating for the past 3 years

• Years of service

• Number of relevant certifications

• All of the above

• None of the above

1. Which independent variable evidences the highest degree of correlation with the dependent variable?

• Average performance rating for the past 3 years

• Years of service

• Number of relevant certifications

• All of the above

• None of the above

Perform a correlation analysis between each of the three pairs of independent variables. Use the results of the correlation analyses to answer question 17.

1. Which pair of independent variable evidences a degree of collinearity that should be cause for concern when performing multivariate linear regression (i.e., evidences a degree of correlation in excess of 0.5)?

• Average performance rating for the past 3 years vs. years of service

• Average performance rating for the past 3 years vs. number of relevant certifications

• Years of service vs. number of relevant certifications

• All of the above

• None of the above

1. Of the seven regression models, which model both accounts for the lowest percentage of the observed variation between the actual values of the dependent variable and the mean value of the dependent variable in the sample data set and evidences the highest degree of error for predicting values for the dependent variable?

• Annual salary vs. average performance rating for the past 3 years

• Annual salary vs. years of service

• Annual salary vs. number of relevant certifications

• Annual salary vs. average performance rating for the past 3 years and years of service

• Annual salary vs. average performance rating for the past 3 years and number of relevant certifications

• Annual salary vs. years of service and number of relevant certifications

• Annual salary vs. average performance rating for the past 3 years, years of service and number of relevant certifications

1. If you were to consider only the three regression models that are based upon a single independent variable, which of the following models would be your preferred model?

• Annual salary vs. average performance rating for the past 3 years

• Annual salary vs. years of service

• Annual salary vs. number of relevant certifications

1. If you were to consider only the three regression models that are based upon two independent variables, which of the following models would be your preferred model?

• Annual salary vs. average performance rating for the past 3 years and years of service

• Annual salary vs. average performance rating for the past 3 years and number of relevant certifications

• Annual salary vs. years of service and number of relevant certifications

1. If you were to compare the preferred regression model based upon a single independent variable with the preferred regression model based upon two independent variables, which model would be preferred overall?

• Preferred regression model based upon a single independent variable

• Preferred regression model based upon two independent variables

1. When you consider all seven regression models, which is the overall preferred regression model?

• Annual salary vs. average performance rating for the past 3 years

• Annual salary vs. years of service

• Annual salary vs. number of relevant certifications

• Annual salary vs. average performance rating for the past 3 years and years of service

• Annual salary vs. average performance rating for the past 3 years and number of relevant certifications

• Annual salary vs. years of service and number of relevant certifications

• Annual salary vs. average performance rating for the past 3 years, years of service and number of relevant certifications

1. Do any of the regression models offer a higher confidence level for the model as a whole, or a lower standard error in comparison to the overall preferred model?

• Yes

• No

The personnel is interested in comparing each employee's actual salary to their predicted salary in order to determine if there are any prevailing salary inequities. Suppose the personnel director considers an employee's current salary to be fair and reasonable if it is within plus or minus 1.5 standard errors of the value estimated by the regression model selected in response to question 22. For each individual employee, calculate his or her estimated salary using the regression model selected in response to question 22, as well calculate his or her upper and lower limits for a fair reasonable salary, in order to answer questions 24 and 25.

1. Of the 24 employees, how many employees' current salary is below what is considered fair and reasonable?

• 0

• 1

• 2

• 3

• 4

• 5

1. Of the 24 employees, how many employees' current salary is above what is considered fair and reasonable?

• 0

• 1

• 2

• 3

• 4

• 5