Job growth. Fortune Magazine publishes the top 100 companies to work for every year. Among the information listed is the percentage growth in jobs at each company.

The output below shows the regression of the 2008 job growth (%) on the 2006 job growth for a sample of 29 companies.

Note that Job Growth 2008 is the response variable.

(money.cnn.com/magazines/fortune/bestcompanies/full_list;

accessed May, 2008).

a) State the hypotheses about the slope (both numerically and in words).

b) Assuming that the assumptions for inference are satisfied, perform the hypothesis test and state your conclusion in context.

c) Explain what the R-squared in this regression means.

d) Do these results indicate that, in general, companies with a higher job growth in 2006 had a higher job growth in 2008? Explain.

Transcribed Image Text:

Dependent variable is: Job Growth 2008 R squared = 25.6% R squared (adjusted) = 22.9% s = 6.129 with 292 = 27 degrees of freedom Variable Coefficient SE (Coeff) t-ratio P-value Intercept 2.993 1.441 2.08 0.0475 Job Growth. 2006 0.399 0.131 3.05 0.0051