In: Statistics and Probability
uppose the following data were collected from a sample of 1515 CEOs relating annual salary to years of experience and the economic sector their company belongs to. Use statistical software to find the following regression equation:
SALARYi=b0+b1EXPERIENCEi+b2SERVICEi+b3INDUSTRIALi+eiSALARYi=b0+b1EXPERIENCEi+b2SERVICEi+b3INDUSTRIALi+ei.
Is there enough evidence to support the claim that on average, CEOs in the service sector have lower salaries than CEOs in the financial sector at the 0.050.05 level of significance? If yes, write the regression equation in the spaces provided with answers rounded to two decimal places. Else, select "There is not enough evidence."
***STEPS ON EXCEL WHAT GOES UNDER X WHAT GOES UNDER Y FOR THE RESIDUAL DATA ANALYSIS TEST PLEASE
Salary | Experience | Service (1 if service sector, 0 otherwise) | Industrial (1 if industrial sector, 0 otherwise) | Financial (1 if financial sector, 0 otherwise) |
---|---|---|---|---|
138344 | 1 | 0 | 0 | 1 |
150000 | 16 | 1 | 0 | 0 |
182590 | 19 | 0 | 0 | 1 |
154725 | 19 | 1 | 0 | 0 |
185465 | 20 | 0 | 0 | 1 |
152925 | 19 | 0 | 1 | 0 |
1193691 | 1 | 0 | 0 | 1 |
141000 | 8 | 0 | 1 | 0 |
169338 | 29 | 0 | 1 | 0 |
141775 | 9 | 0 | 1 | 0 |
147050 | 14 | 1 | 0 | 0 |
191675 | 21 | 0 | 0 | 1 |
164700 | 30 | 1 | 0 | 0 |
152225 | 18 | 1 | 0 | 0 |
159337 | 25 | 0 | 1 | 0 |
Answer
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SALARYi =_____ + _______ EXPERIENCEi + _______ SERVICEi + ______ INDUSTRIALi + ei
SALARYi = 514016.08 - 10940.57*EXPERIENCEi - 148029 * SERVICEi - 164210.8 INDUSTRIALi
outptut:
procedure:
data -> data analysis -> regression