##### Question

In: Statistics and Probability

# Assume you have the following set of job evaluation factors: A. Educational Requirements B. Experience C....

Assume you have the following set of job evaluation factors:

A. Educational Requirements

B. Experience

C. Responsibility

D. Mental Effort

E. Physical Effort

F. Working Conditions

 A B C D E F G Admin. Secretary I 4 5 3 2 1 1 1 Technician II 4 2 1 2 1 2 1 Engineer I 5 1 2 3 2 2 1 Engineer IV 6 4 4 5 1 1 3 Accounting Leader 5 3 5 4 1 1 2 Consulting Engineer 7 7 5 6 2 2 3

Assume further that you have made an attempt to statistically weigh your grade system by regressing the jobs overall pay grade on the level for each compensable factor with these results.

R-Squared: .9233

Standard error of estimate: .645

64 valid cases

Intercept: -2.54

F: 176.25

Prob: 0.000

 Variable Regression Coefficient Standardized coefficient T statistic T probability Educational Requirements 1.40 .46 9.63 .0000 Experience .70 .34 4.81 .0000 Responsibility .14 .07 1.76 .0838 Mental Effort .09 .03 1.26 .1824 Physical Effort .48 .10 2.08 .0416 Working Conditions .46 .15 3.04 .0036 Work Leadership .40 .11 1.82 .0721

a. based on the printout, does your job evaluation system do a good job of explaining your current grade structure? explain.

b. based on the handouts I gave you, which compensable factors would you keep and which would you drop based on the printout? Explain. Would you ever consider keeping a compensable factor that was not a statistically significant predictor? Explain.

c. if you assume you used all compensable factors, estimate the pay grade for the accounting leader to be sure to include all of your work. If the accounting leader is currently in pay grade 9 what would your conclusions be about actual versus predicted fit?

## Solutions

##### Expert Solution

a.

The p-value (Prob: 0.000) for the significance test of the regression model is less than 0.05 significance level. Thus there is strong evidence that the model is significant  and does a good job of explaining your current grade structure.

b.

The statistically significant predictors are the predictors with p-value (T probability) less than 0.05. Similarly, the statistically non-significant predictors are the predictors with p-value (T probability) greater than 0.05.

Thus, compensable factors which are statistically significant predictor in estimating Job Grade and which we keep in the model are Educational Requirements, Experience, Physical Effort and Working Conditions.

The compensable factors which are not statistically significant predictor in estimating Job Grade and which we drop in the model are Responsibility, Mental Effort and Work Leadership.

We can consider keeping a compensable factor that was not a statistically significant predictor as they may explain (although small) variation in the dependent variable Job Grade.

c.

The estimated regression equation is,

Job Grade = 1.40 * Educational Requirements + 0.7 * Experience + 0.14 * Responsibility + 0.09 * Mental Effort + 0.48 * Physical Effort + 0.46 * Working Conditions + 0.4 * Work Leadership

Educational Requirements = 5,

Experience = 3,

Responsibility = 5,

Mental Effort = 4,

Physical Effort = 1,

Working Conditions = 1,

Job Grade = 1.40 * 5 + 0.7 * 3 + 0.14 * 5 + 0.09 * 4 + 0.48 * 1 + 0.46 * 1 + 0.4 * 2

= 11.9

Actual - predicted fit = 9 - 11.9 = -2.9

We conclude that the actual pay grade for the accounting leader is less than the predicted pay grade.

## Related Solutions

##### Evaluation of client outcomes and satisfaction with the educational experience is an important component of client...
Evaluation of client outcomes and satisfaction with the educational experience is an important component of client education. Create an evaluation of the findings from your Teacher Evaluation Tool and Learner Objectives Tool for your Power Point presentation on the importance of hand hygiene. (1-2 paragraphs)
##### You are investigating systems requirements for a shipping company. Assume that you have set up an...
You are investigating systems requirements for a shipping company. Assume that you have set up an interview with the manager of the shipping department. Your objective is to determine how shipping works and what the information requirements for the new system will be. Make a list of questions—three (3) open ended and three (3) closed ended— that you would use. Include four (4) questions or techniques you would use to ensure you find out about the exceptions. c. During interviews,...
##### You are investigating systems requirements for a shipping company. Assume that you have set up an...
You are investigating systems requirements for a shipping company. Assume that you have set up an interview with the manager of the shipping department. Your objective is to determine how shipping works and what the information requirements for the new system will be. IN 300 WORDS Make a list of questions—three (3) open ended and three (3) closed ended— that you would use. Include four (4) questions or techniques you would use to ensure you find out about the exceptions.
##### __________ requirements serve to insure the performance of futures contracts. D. Margin B. Experience C. Age...
__________ requirements serve to insure the performance of futures contracts. D. Margin B. Experience C. Age A. Income A put option is in the money if the strike price is __________ the market price of the underlying security. C. less than A. equal to B. greater than D. none of the above Assume that you hold a short position in an oil futures contract at $40 per barrel and covered as the price rose to$50 per barrel, the profit/loss...
##### Education & Networking – What minimal educational requirements are needed to get an entry-level job in...
Education & Networking – What minimal educational requirements are needed to get an entry-level job in your field medical billing and coding ? Is additional education necessary to get promoted? Are there any certifications that will help you in your career? Are there any professional organizations you could join to meet professionals in your field? Do you know anyone who could help you make contacts within your profession? Career-specific knowledge and skills – What knowledge and skills do experts in...
##### Three of the factors that may influence the way a set of requirements is prioritized, are:...
Three of the factors that may influence the way a set of requirements is prioritized, are: (a) Benefit, (b) Cost, and (c) Time-Sensitivity. Explain what each of these three factors mean. (In other words, how does each of these factors influence the way each requirement may be judged for determining its prioritization?) Please clearly indicate in your answer, when you are answering A, B and C.
##### Three of the factors that may influence the way a set of requirements is prioritized, are:...
Three of the factors that may influence the way a set of requirements is prioritized, are: (a) Benefit, (b) Cost, and (c) Time-Sensitivity. Explain what each of these three factors mean. (In other words, how does each of these factors influence the way each requirement may be judged for determining its prioritization?) Please clearly indicate in your answer, when you are answering A, B and C.
##### You have applied for a job. As part of its evaluation process, you must take an...
You have applied for a job. As part of its evaluation process, you must take an examination of the time value of money analysis covering the following questions. Please show your work including each step by using your calculator OR Excel. (Identify N, I/Y, PV, PMT, and FV) A) What’s the future value of $200 after 3 years if it earns 8%, annual compounding? B) What’s the present value of$200 to be received in 3 years if the interest...
##### Assume that the following variables have been declared: String a = “Ready, Set, Go!”; String b...
Assume that the following variables have been declared: String a = “Ready, Set, Go!”; String b = a.substring(5, 10); char b1 = b.charAt(2); Evaluate the following expression: 1. Character.isLowerCase(b1) 2. b1 + 5 3. b + 5 4. Character.toLowerCase(b1) 5. a.charAt(2 + a.indexOf(“e”))
##### Assume that we have 3 Stocks A, B & C. A B C Expected return 8%...
Assume that we have 3 Stocks A, B & C. A B C Expected return 8% 12% 6% Variance 0.012 0.028 0.009 If the covariance between stock A & B return is equal to 0.009159, stock A & C return is equal to -0.005146 and stock B & C return 0.01572 Required Calculate the Standard Deviation for stock A, B & C. which stock is risky and why? Calculate the correlation between every two stocks. What is the indication of...