Question

Row Labels	Average of hourly_rate	Average of num_completed_tasks
Furniture Assembly	$                                  39.42	186
Mounting	$                                  50.47	220
Moving Help	$                                  82.55	258
Grand Total	$                                  57.48	221

    How can we use market data to suggest hourly rates to Taskers that would

    maximize their opportunity to be hired?

    Please describe in detail, with code and formulas that support your model.

Answer 1

Sol

Run Correlation to check whether relationship exists between Average of hourly rate and average_num_completed_tasks.

	Average of num_completed_tasks	Average of hourly_rate
Average of num_completed_tasks	1
Average of hourly_rate	0.970762	1

r=correlation coefficient=0.970762

there exists a strong positive relationship between Average of hourly rate and average_num_completed_tasks.

Now.Run Regression model to predict overly rate.

In Excel Instal analysis tool pack then go to

Data>Data analsysis>regresssion.

Y as rate

x as hours

you get below output

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.970761686
R Square	0.94237825
Adjusted R Square	0.913567375
Standard Error	5.377788028
Observations	4
ANOVA
	df	SS	MS	F	Significance F
Regression	1	945.9673918	945.9673918	32.70912	0.029238
Residual	2	57.84120815	28.92060408
Total	3	1003.8086
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	-76.10989305	23.51244824	-3.237004173	0.083637	-177.276	25.05601
Average of num_completed_tasks	0.603796127	0.105573743	5.719188399	0.029238	0.149549	1.058043

Average of hourly rate=-76.10989305+0.603796127*Average of num_completed_tasks

From above eq.hourly rates can be predicted.