Section D: Multiple Regression Analysis [8 marks]

Elizabeth Childs is the manager of a local research firm. In preparation for an upcoming meeting, she has asked you, a newly hired data analyst to investigate the salary structure of the "Level B" Researchers in the company based on three variables: years of experience, a rating of effectiveness by direct supervisor, and whether the individual has a master's degree. A random sample of Level B Researchers in the company was taken. Raw data is below.

Salary ($000)	Years of Experience	Supervisor's Rating	Master's Degree*
79.2	24	80	0
74.2	17	64	0
74.7	19	86	1
74	23	62	1
69.3	22	73	0
56.6	13	45	1
80.4	23	74	0
69.4	11	61	1

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.832635
R Square	0.693281
Adjusted R Square	0.463242
Standard Error	5.4638858
Observations	8
ANOVA
	df	SS	MS	F	Significance F
Regression	3	269.91	89.972	3.013760	0.157169
Residual	4	119.41	29.8540
Total	7	389.335
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	43.7556	13.7575	3.18047	0.03351	5.5584	81.9	5.558	81.952
Years of Experience	0.39857	0.59077	0.67466	0.53687	-1.2416	2.03	-1.24	2.0388
Supervisor's Rating	0.32233	0.20591	1.56537	0.19254	-0.2493	0.89	-0.24	0.8940
Master's Degree*	-2.12551	4.6097	-0.46108	0.66869	-14.924	10.6	-14.9	10.673

	Salary ($000)	Years of Experience	Supervisor's Rating	Master's Degree*
Salary ($000)	1
Years of Experience	0.693050943	1
Supervisor's Rating	0.779022436	0.624075325	1
Master's Degree*	-0.5088755	-0.5423261	-0.3842717	1

Using= 0.05,