In: Economics
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 = _____

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 .