Use the data given below to answer the following problem. This data is also on the excel data file.
Following is an extract from a firm's database detailing the number of hours spent on the job by employees and their corresponding pay. Use Excel to determine if the number of hours spent on the job represents a statistically significant variable in explaining the variation in employee pay. (Note: Assume a level of significance of 0.05 wherever necessary.)

Hours on the job Salary ($)

4 340

12 850

7 570

5 470

11 820

8 610

9 630

13 900

10 800

6 480

Problem #4 Part A: Construct a scatter diagram and use the Excel Trendline tool to find the best-fitting simple linear regression model.

Problem #4 Part B: Is the hours spent on the job a statistically significant variable in explaining the variation in pay of employees? Explain why you think hours on the job is statistically significant or not. (Hint: Use Excel’s Regression tool).

Answer rating: 100% (QA)

since null hypothesis is re... View the full answer