Question
Human Capital Management Company ABC wishes to predict the annual salary of employees to prepare the budget in the coming years. Data was collected from
Human Capital Management Company ABC wishes to predict the annual salary of employees to prepare the budget in the coming years. Data was collected from 40 employees to develop a regression model to predict the employees annual salary using their years with the company (Years), their starting salary (Starting), and their Gender (Male = 0, Female = 1). The partial computer results are shown below:
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ANOVA |
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| df | SS | MS | F |
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Regression | 3 | 4334682510 |
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Residual | 36 | 4056901131 |
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Total | 39 | 8391583641 |
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| Coefficients | Standard Error | t Stat |
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Intercept | 27946.57894 | 4832.438706 | 5.783121245 |
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Years | 1665.251558 | 425.0829092 | 3.917474737 |
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Starting | 0.266374185 | 0.12610443 | 2.112330112 |
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Gender | -3285.541043 | 5617.145392 | -0.584912943 |
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(a) What is the regression equation.
(b) In testing the null hypothesis that the regression equation is not significant
at the 0.05 level, what is the appropriate conclusion?
(c) In testing the significance of the partial regression coefficient associated with the Years variable at the 0.05 level, what is the appropriate conclusion?.
(d) In testing the significance of the partial regression coefficient associated with the Starting variable at the 0.05 significance level, what is the appropriate conclusion?
(e) In testing the significance of the partial regression coefficient associated with the Gender variable at the 0.05 significance level, what is the appropriate conclusion?
(f) For a male employee with 5 years of experience and a starting salary of $30,000, what is the approximate 95% confidence interval for his annual salary? (give formula and t-value)
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