ASSIGNMENT QUESTIONS:

PROBLEM $1$: $(50$ Marks$)$ Use the dataset provided in the Excel file $$Job Satisfaction$$:

a$)$ Buildaregressionmodelforoveralljobsatisfactionasthedependentvariableand use years of service and department as independent variables. For handling the categorical $$department$$ variable, define the appropriate dummy variables, as it contains multiple categories. Use the administrative department as your reference category. $(38$ Marks$)$

b$)$ Provideexplanationsregardingthestatisticalsignificanceofeachcoefficientinthe regression model. $(12$ Marks$)$

PROBLEM $2$: $(50$ Marks$)$ The Excel file $$Closing Stock Prices$$ provides data for four stocks $($IBM$,$ INTC, CSCO, GE$)$ and DJ Industrials Index Average over a one$-$month period.

a$)$ Develop a spreadsheet for forecasting each of the stock prices of IBM, INTC, CSCO, GE and the DJ Industrials Index using a simple two$-$period and three$-$period moving average. $(20$ Marks$)$

b$)$ Compute Mean absolute deviation $($MAD$)$ and determine whether two or three moving average is better. $(30$ Marks$)$