Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your firm is interested in learning more about how its salaries relate to its employees tenure with the firm. It has collected the following data

Your firm is interested in learning more about how its salaries relate to its employees tenure with the firm. It has collected the following data for 25 of its employees.

EMPLOYEE NUMBER TENURE (YEARS) SALARY ($)
1 15 53,908
2 32 78,230
3 14 55,164
4 20 57,647
5 25 63,111
6 14 54,991
7 28 74,571
8 30 73,189
9 28 71,859
10 17 55,978
11 14 61,676
12 6 44,865
13 21 64,676
14 11 59,101
15 14 58,441
16 32 81,964
17 29 76,373
18 33 82,860
19 27 70,019
20 16 58,474
21 26 80,074
22 3 45,594
23 14 63,676
24 9 68,444
25 14 70,306

Plot these data points, and describe using regression how salary relates to firm tenure for this group.

Activity II - The data attached contains information on customers ratings of your product (CustRate), on a scale of 1 to 100, along with demographic information. The demographic information includes: income (Inc), age (Age), education (Educ), and marital status (Marr). The last variable equals one if the respondent is married and zero otherwise. Assume the data-generating process can be written as:

CustRatei=+1Inci+2Agei+3Educi+4Marri+Ui.

  1. Test the hypothesis that income has no impact on customer rating, using a confidence level of 95%. Be sure to provide the reasoning behind your result.
  2. Test the hypothesis that 2=0.05, using a confidence level of 90%. Be sure to provide the reasoning behind your result.
  3. Build a 95% confidence interval for the impact of education on customer rating. Be sure to provide the reasoning for your result.
  4. Build a 95% confidence interval for the impact of being married on customer rating. Be sure to provide the reasoning for your result.
  5. Predict the change in customer rating if a customers income increases by $10,000, with no change in age, education, or marital status.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stochastic Filtering With Applications In Finance

Authors: Bhar Ramaprasad

1st Edition

9814304859, 9789814304856

More Books

Students also viewed these Finance questions

Question

7. Determine what feedback is provided to employees.

Answered: 1 week ago