Question
The director of a training program for a large insurance company has the business objective of determining which training method is best for training underwriters.
The director of a training program for a large insurance company has the business objective of determining which training method is best for training underwriters. The three methods to be evaluated areclassroom, online, and courseware app. The 30 trainees are divided into three randomly assigned groups of 10. Before the start of thetraining, each trainee is given a proficiency exam that measures mathematics and computer skills. At the end of thetraining, all students take the sameend-of-training exam. Let x1=Proficiency, x2=Classroom, and x3=Online. Regression analysis was performed to predict the score on theend-of-training exam and the output is shownbelow:
Regression Statistics
Multiple R
0.8926
RSquare
0.7967
Adj. R Square
0.7733
Standard Error
9.3298
Observations
30
ANOVA
DF
SS
MS
F
P-value
Regresion
3
8869.6375
2956.5458
33.9658
<0.0001
Residual
26
2263.1625
87.0447
Total
29
11132.8
Coefficients
StdError
t stat
P-value
Lower95%
Upper95%
Intercept
-62.0916
15.9120
-3.9022
0.0006
-94.7992
-29.3839
x1
1.1115
0.1503
7.3926
****
****
****
x2
-22.5783
4.1793
-5.4024
0.0000
-31.1691
-13.9876
x3
7.3669
4.1734
1.7652
0.0893
-1.2116
15.9454
Use the above information to answer questionsa) thruh)
a) The correct interpretation of the regression coefficient for the predictor online in the model is
A.
For every additional score inproficiency, the end of training exam score will increase by 1.1115 points.
B.
An underwriter being trained by the online method is expected to increase theend-of-training exam score by 7.3669 points more than the one who is trained by the courseware app method or the classroom method .
C.
For every 1 unit increase in onlinetraining, the end of training exam score will increase by 7.3669 points.
D.
While holding the proficiency scoreconstant, an underwriter being trained by the online method is expected to increase theend-of-training exam score by 7.3669 points more than the one who is trained by the courseware app method.
b) The appropriate null and alternate hypotheses for the test of the significance of the modelare:
A.
H0:1=2=3=0VsHA:Notalli are equal to 0(i=1,2,3)
B.
H0:1=2=3=0VsHA:Notalli are equal to 0(i=1,2,3)
C.
H0:1=2=3 VsHA:Notalli are equal to each other (i=1,2,3)
D.
H0:1=2=3VsHA:Notalli are equal to each other(i=1,2,3)
c) For the test of the modelsignificance, the value of the test statistic is_____.
A.
0.7967
B.
3.9022
C.
9.3298
D.
33.9658
d) What is the best conclusion for the test of the significance of themodel?
A.
Reject H0.
B.
There is insufficient evidence to conlcude that at least one of the proficiency and the training methods of the trainee is significant in predicting the score of theend-of-training exam.
C.
There is sufficient evidence to conclude that at least one of the proficiency and the training methods of the trainee is significant in predicting the score of theend-of-training exam.
D.
Don't reject H0.
e) Which of the following expression is the reduced equation for predicting the score of theend-of-training exam for one who trained with online training method.
A.
EndExamScore=62.0916+1.1115Proficiency
B.
EndExamScore=54.7247+1.1115Proficiency
C.
EndExamScore=62.0916+1.1115Proficiency-22.5783Classroom
D.
EndExamScore=84.6746+1.1115Proficiency
f) What is the appropriate null and alternate hypotheses to test the significance of the predictor proficieny in themodel?
A.
H0:10VsHA:1=0
B.
H0:b10VsHA:b1=0
C.
H0:1=2=3=0VsHA:Not all i=0
D.
H0:1=0VsHA:10
g) What is the best conclusionfor the test of the significance of the predictor proficiency in themodel?
A.
There is insufficient evidence to conclude that proficiency is statistically significant in predicting theend-of-training exam score.
B.
Reject H0.
C.
Don't reject H0.
D.
There is sufficient evidence to conclude that proficiency is statistically significant in predicting theend-of-training exam score.
h) The95% confidence interval for 1 is closest to
A.
(0.9138,1.3092)
B.
(0.8550,1.3679)
C.
(0.8025,1.4204)
D.
(0.7138,1.5205)
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