Fortune magazine publishes an annual list of the 100 best companies to work for. The data in
Question:
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a. Use these data to develop an estimated regression equation that could be used to predict the average annual salary for salaried employees given the average annual salary for hourly employees.
b. Use α = .05 to test for overall significance.
c. To incorporate the effect of size, a categorical variable with three levels, we used two dummy variables: Size-Midsize and Size-Small. The value of Size-Midsize = 1 if the company is a midsize company and 0 otherwise, and the value of Size-Small = 1 if the company is a small company and 0 otherwise. Develop an estimated regression equation that could be used to predict the average annual salary for salaried employees given the average annual salary for hourly employees and the size of the company.
d. For the estimated regression equation developed in part (c), use the t test to determine the significance of the independent variables. Use α = .05.
e. Based upon your findings in part (d), develop an estimated regression equation that can be used to predict the average annual salary for salaried employees given the average annual salary for hourly employees and the size of thecompany.
Step by Step Answer:
a A portion of the Minitab output is shown below The regression equation is Salaried 1000s 403 119 H...View the full answer
Essentials Of Statistics For Business And Economics
ISBN: 9781305081598
7th Edition
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam
