The Crayhill Instrumentation Company Case The Craybill Instrumentation Company produces highly tech nical industrial instrumentation devices. The human resources {HR} director has the business objective of improving recruit ing decisions concerning sales managers. The company has 45 sales regions, each headed by a sales manager. Many of the sales managers have degrem in electrical engineering. and due to the technical nature of the product line, several company ofcials believe that only applicants with degrees in electrical engineering should be considered. At the time oftheir application, candidates are asked to talte the StrongCampbell Interest Inventory Test and the 1|rin'uuderlic Personnel Test. Due to the time and money mvolved with the testing, some discussion has taken place about dropping one or both of the tests. To start. the HR director galemd informa- tion on each ofthe 45 current sales managers, including years of selling experience. electrical engineering background. and the scores from both the Wenderlic and Strong-Campbell tests. The HR director has decided to use regression modeling to pre dict a dependent variable of \"sales tiniest\" score, which is the ratio of the regions' actual sales divided by the target sales. The target values are crmsuucted each year by upper management. in consultation with the sales managers, and are based on past performance and market potential within each region. The le contains information on the 45 current sales manag- ers. The following variables are included: SalesRatio of yearly sales divided by the target sales value for that region; the target values were munrally agreed upon 'eslistje expectations" WonderScore from the Wonderlie Personnel Test; the higher the score. the higher the applicant's perceived ability to manage SICScore on the Strongaarnpbeil Interest Inventory Test'. the higher the score, the higher the applicant's perceived interest in sales ExperienceNumber of years ofseiling experience prior to becoming a sales manager EngineerDummy variable that equals I if the sales manager has a degree in electrical engineering and it otherwise a. Develop the most appropriate regression model to predict More Descriptive Choices Follow-Up sales. Follow-up the Using Statistics scenario "More Descrip- b. Do you think that the company should continue administer- tive Choices, Revisited" on page 159, by developing regres- ing both the Wonderlic and Strong-Campbell tests? Explain. sion models to predict the one-year return, the three-year c. Do the data support the argument that electrical engineers return, the five-year return, and the ten-year return based on outperform the other sales managers? Would you support the the assets, turnover ratio, expense ratio, beta, standard devi- idea to hire only electrical engineers? Explain. ation, type of fund (growth versus value), and risk (stored in d. How important is prior selling experience in this case? Retirement Funds ). (For this analysis, combine low and average Explain. risk into the new category "not high.") Be sure to perform a thor- e. Discuss in detail how the HR director should incorporate the ough residual analysis. Provide a summary report that explains regression model you developed into the recruiting process. your results in detail