Question

In: Operations Management

Suppose a researcher gathered survey data from 19 employees and asked the employees to rate their...

Suppose a researcher gathered survey data from 19 employees and asked the employees to rate their job satisfaction on a scale from 0 to 100 (with 100 being perfectly satisfied). Suppose the following data represent the results of this survey. Assume that relationship with their supervisor is rated on a scale from 0 to 50 (0 represents a poor relationship and 50 represents an excellent relationship); overall quality of the work environment is rated on a scale from 0 to 100 (0 represents poor work environment and 100 represents an excellent work environment); and opportunities for advancement is rated on a scale from 0 to 100 (0 represents no opportunities and 100 represents excellent opportunities). Answer the following questions: What is the regression formula based on the results from your regression? How reliable do you think the estimates will be based on this formula? Explain your answer by citing the relevant metrics. Are there any variables that do not appear to be good predictors of job satisfaction? How can you tell? If a new employee reports that her relationship with her supervisor is 40, rates her opportunities for advancement to be at 30, finds the quality of the work environment to be at 75, and works 60 hours per week, what would you expect her job satisfaction score to be?

Job satisfaction Relationship with supervisor Opportunities for advancement Overall quality of work environment Total hours worked per week
55 27 42 50 52
20 35 28 60 60
85 40 7 45 42
65 35 48 65 53
45 29 32 40 58
70 42 41 50 48
35 22 18 75 55
60 34 32 40 50
95 40 48 45 40
65 33 11 60 38
85 38 33 55 47
10 5 21 50 62
75 37 42 45 43
80 37 46 40 42
50 31 48 60 46
90 42 30 55 38
75 36 39 70 43
45 20 22 40 42
65 32 12 55 53

Solutions

Expert Solution

Suppose a researcher gathered survey data from 19 employees and asked the employees to rate their job satisfaction on a scale from 0 to 100 (with 100 being perfectly satisfied).

We take job satisfaction as the dependent variable and relationship with their supervisor, total hour worked per week, overall quality of work environment and opportunity in advancement are independent variables.

The multiple linear regression output using SPSS software is given below

Variables Entered/Removeda

Model

Variables Entered

Variables Removed

Method

1

Total hour worked per week, overall quality of work environment, opportunity in advancement, Relationship with supevisorb

.

Enter

a. Dependent Variable: Job satisfaction

b. All requested variables entered.

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.970a

.941

.925

6.35510

a. Predictors: (Constant), total hour worked per week, overall quality of work environment, opportunity in advancement, Relationship with supervisor

ANOVAa

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

9087.209

4

2271.802

56.250

.000b

Residual

565.423

14

40.387

Total

9652.632

18

a. Dependent Variable: Job satisfaction

b. Predictors: (Constant), total hour worked per week, overall quality of work environment, opportunity in advancement, Relationship with supervisor

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

4.359

10.251

.425

.677

Relationship with supervisor

2.052

.171

1.010

11.977

.000

opportunity in advancement

-.178

.120

-.103

-1.481

.161

the overall quality of the work environment

-.037

.145

-.017

-.252

.805

total hour worked per week

-.030

.133

-.018

-.223

.826

a. Dependent Variable: Job satisfaction

What is the regression formula?

From the coefficient table,

The canonical form of the regression line is

Where Y = job satisfaction( Dependent variable)

X1, X2, X3, and X 4 are independent variables.

B0 = Y intercept

B1, B2, B3, and B4 are the slope of the four predictors.

--------------------------1)

How reliable do you think the estimates will be based on this formula? Explain your answer by citing the relevant metrics.

The regression hypothesis is given by

The null hypothesis is

H0: There is no statistically significant relationship between the dependent variable and independent variables.

The alternative hypothesis is

Ha: There is a statistically significant relationship between the dependent variable and independent variables.

ANOVA table provides us with model fit or predictive power (estimate) of the independent variable on the dependent variable.

From the ANOVA table, we can observe p-value associated with the F test is less than 0.05( p=0.000). Hence we reject the null hypothesis and conclude that there is a statistically significant relationship between the dependent variable and independent variables.

Are there any variables that do not appear to be good predictors of job satisfaction? How can you tell?

Yes. There are two variables that do not appear to be good predictors of job satisfaction.

1) overall quality of work environment: t-test static value is -.252 and p-value associated with t-test is also very high (0.805).

2) total hour worked per week: t-test static value is -.22 and p-value associated with t-test is also very high (0.829).

If a new employee reports that her relationship with her supervisor is 40, rates her opportunities for advancement to be at 30, finds the quality of the work environment to be at 75, and works 60 hours per week, what would you expect her job satisfaction score to be?

Put X1= 40, X2=30, X3= 75 AND X4=60 in equation 1, we have the value of job satisfaction

Job satisfaction y= 77


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