Question

You build several models predicting job performance (sales dollars in thousands) using years of industry experience as a predictor. The slope of years of industry experience is .40 (p < .0001) for a simple linear regression and 60 (p<.0001) when including three other predictors (education level, SAT score, and age) in a multiple linear regression. Which of the following statements are correct (check all that apply)? Select one or more a. Holding education level, SAT score, and age constant, we expect each year of industry experience to increase expected sales dolars by S600 O b. Controlling for education level, SAT score, and age changes the statistical significance of industry experience when predicting job performance (at the .05 level). c. Holding no other variables constant, we expect each year of industry experience to increase expected sales dollars by $600 d. Even after controlling for education level, SAT score, and age, industry experience is a statistically significant predictor of job performance (at the 05 level of significance)

Answer 1

Answer 2

According to the question, the job performance is predicted using a simple linear regression where years of industry experience is considered as predicted using a multiple linear regression where years of industry experience, education level, SAT score, and age are considered as predictor variables. predictor variable. Also, the job performance is In simple linear regression, the slope coefficient is 0.40 and p-value for the slope is less than 0.0001. In multiple regression, the coefficient corresponding to year of experience is 0.60 and p- value is less than 0.0001 In multiple regression, the coefficient corresponding to year of experience can be interpreted as the one-year increase in the industry experience causes an increase of (0.60 x1000) = $600 in job performance, when the other predictor variable is constant. Therefore, option (a) is a correct statement According to the provided data, the p-value corresponding to year of industry experience is less than 0.0001 for both the model. As the p-value is small, it can be said that the years of industry experience has a statistically significant effect on the job performance. Hence, it can be concluded that the statement (d) is correct. option (a) and option (d) Therefore, the correct statements are