Question

In: Math

Kamini, a student of the 1-Year post graduate program at the International School of Business and...

Kamini, a student of the 1-Year post graduate program at the International School of Business and Design is trying to establish the relationship between compensation (in Rs. Lakh) and years of work experience. She collected data from 9 students who have been placed and fitted a regression equation with Compensation (in Rs. Lakh) as the dependent variable and Years of experience as the independent variable. The Excel output is given below (with some missing values):

SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square	0.67224
Standard Error	1.262251
Observations	9

ANOVA
	df	SS	MS	F	Significance F
Regression	1			17.40811	0.004177
Residual	7	11.15294	1.593277
Total	8	38.88889

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	11.91765	1.542901		0.000114	8.269266	15.56603
years of experience		0.290431		0.004177	0.525005	1.898524

Answer the following questions based on the above.

1. What is the value of Regression Sum of Squares?

2. What is the 95% confidence interval for the slope?

3. What is the estimated compensation for a person with 8 years of experience?

4. What is the coefficient of correlation between Compensation and Years of experience?

5. What is the R2 for the above regression equation?

6. What is the t-value corresponding to the intercept?

7. Interpret the value 0.004177 under the column “P-Value”

8. What is the expected compensation for a person with no work experience?

9. The above output provides 95% confidence interval for the intercept. What is the lower limit for the 90% confidence interval for the intercept?

10. The above output provides 95% confidence interval for the intercept. What is the upper limit for the 90% confidence interval for the intercept?

Solutions

Expert Solution

Solution:

1. What is the value of Regression Sum of Squares?

Answer:

2. What is the 95% confidence interval for the slope?.

Answer:

3. What is the estimated compensation for a person with 8 years of experience?

Answer:

4. What is the coefficient of correlation between Compensation and Years of experience?

Answer:

5. What is the R2 for the above regression equation?

Answer:

6. What is the t-value corresponding to the intercept?

Answer:

7. Interpret the value 0.004177 under the column “P-Value”

Answer: The p-value = 0.004177 is less than 0.05 significance level, we, therefore, reject the null hypothesis and conclude that there is a significant relationship between the two variables.

8. What is the expected compensation for a person with no work experience?

Answer:

9. The above output provides 95% confidence interval for the intercept. What is the lower limit for the 90% confidence interval for the intercept?

Answer:

10. The above output provides 95% confidence interval for the intercept. What is the upper limit for the 90% confidence interval for the intercept?

Answer:

milcah answered 10 months ago

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