Question

Use EXCEL and screenshot all steps

The following 6 questions are related. A statistics practitioner in an international company is investigating the factors that affect salary of sale managers. He wondered if evaluations by customers are related to salaries. To this end, he collected 100 observations on:

y      =   Annual salary (in dollars)
x      =   Mean score on customer evaluations

      To accomplish his goal, he assumes the following relationship:

y = β(0) +  β(1)x + ε     

Then, using Excel’s Data Analysis, he obtained the following result.

R²=0.68

	Coefficient	Standard Error
Intercept	25700	11400
x	5320	2200

In regression analysis, the expression y = β(0) + β(1) + ε is called the

Select one:

a. regression coefficient

b. correlation equation

c. regression model

d. estimated regression equation

Larger values of R^2 imply that the observations are more closely grouped about the

Select one:

a. least squares line

b. average value of the dependent variable

c. origin

d. average value of the independent variables

The equation y(hat) = b(0) + b(1)x is called the

Select one:

a. parameter

b. estimated regression equation

c. regression model

d. population model

The estimated regression model is given by y hat= b₀+b₁x = 25700 + 5320 * x. What is the interpretation of b₁?

Select one:

a. When mean score on customer evaluation increases by 1, average annual salary increases by 25700 dollars.

b. When mean score on customer evaluation increases by 1, average annual salary increases by 5320 dollars.

c. When annual salary increases by a dollar, mean score on customer evaluation increases by 5320.

d. When annual salary increases by a dollar, mean score on customer evaluation increases by 25700.

To test for a significant regression relationship, we can conduct a hypothesis test to determine whether:

Select one:

a. β(1) is not zero

b. R^2 is not zero

c. all of the above

d. β(0) is not zero

What is the interpretation of? R^2=0.68?

Select one:

a. 68% of total variability in mean score on customer evaluation (about the average) is due to changes in annual salary.

b. 68% of total variability in annual salaries (about the average) is due to changes in the mean score on customer evaluation.

Answer 1