Question

In: Economics

Suppose we want to predict job performance of Chevy mechanics based on mechanical aptitude test scores....

Suppose we want to predict job performance of Chevy mechanics based on mechanical aptitude test scores.

Job Performance Mechanical Aptitude
1 40
2 45
1 38
3 50
2 48
3 55
3 53
4 55
4 58
3 40
5 55
3 48
3 45
2 55
4 60
5 60
5 60
5 65
4 50
3 58
6 60
3 45

Test at 0.05 level of significance. Assuming data is normal.  Use 2 decimal places.

STATISTICS = _____

R = _____

COEFFICIENT OF DETERMINATION = _____

SLOPE OF THE LINE = _____

Y INTERCEPT = _____

Solutions

Expert Solution

Hence T Statistics = 5.44 , as it is too high as compared to T critical value . and also lies in the rejection region . So we reject the null hypothesis . Slope coefficient have a significant impact on Job performance .

Coefficient of determintion = R ^ 2 = 0.5971

R = 0.5971

= 0..7727

Regression line , Y = -3.68 + 0.1355 X

where Y = Job performance

X = Mechanical Aptitude

Hence slope of the line is + 0.1355

Y intercept = Put X = 0 , i.e -3.68 .


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