Section B: Regression

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A regression analysis was conducted to examine job performance of $1200$ employees in a large firm to assess the effectiveness of various selection tools. Use the following output to answer the questions below.$$

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Information about the variables:

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Cognitive Ability Test $=$ Performance on cognitive ability test with possible scores from $1$ to $50$

Personality Test $=$ Performance on personality test $($measured from $1-5)$

Structured Interview $=$ Performance on structured interview $($measured from $1-7)$

Job Performance $=$ Level of job performance $($measured from $1-7)$

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Coefficients

Standard Error

t Stat

P$-$value

Intercept

$3\mathrm{.}58$

$1\mathrm{.}81$

$8\mathrm{.}36$

$0\mathrm{.}000$

Cognitive Ability Test

$1\mathrm{.}539$

$0\mathrm{.}24$

$6\mathrm{.}41$

$0\mathrm{.}000$

Personality Test

$1\mathrm{.}101$

$0\mathrm{.}31$

$3\mathrm{.}55$

$0\mathrm{.}043$

Structured Interview

$0\mathrm{.}285$

$0\mathrm{.}29$

$0\mathrm{.}98$

$0\mathrm{.}312$

Dependent variable:$$ Job Performance

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Q$1.$ What are the independent $($predictor$)$ variables in this regression analysis? What is the dependent $($outcome$)$ variable in this analysis?

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Q$2.$ According to this data, explain whether the following recommendations are valid?

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a$)$ The company should use cognitive ability test as part of the selection system.

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b$)$ Low job performance is a huge problem for this company.

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c$)$ The company should not use personality test as part of the selection system.

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d$)$ New employees are more productive.

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e$)$ The company should use structured interview as part of the selection system.