Question

In: Statistics and Probability

Select at least three variables that you believe have a linear relationship. Specify which variable is...

Select at least three variables that you believe have a linear relationship.

Specify which variable is dependent and which are independent.

Collect the data for these variables and describe your data collection technique and why it was appropriate as well as why the sample size was best.

Submit the data collected by submitting the SPSS data file with your submission.

Find the Correlation coefficient for each of the possible pairings of dependent and independent variables and describe the relationship in terms of strength and direction.

Find a linear model of the relationship between the three (or more) variables of interest.

Explain the validity of the model.

Solutions

Expert Solution

1. Select at least three variables that you believe have a linear relationship.

Answer:

We select the three variables cognitive skills, communication skills and sales performance that we believe has a linear relationship.

a. Specify which variable is dependent and which are independent.

Answer:

For this model, the dependent variable is given as sales performance and the independent variables are given as cognitive skills and communication skills.

2. Collect the data for these variables and describe your data collection technique and why it was appropriate as well as why the sample size was best.

Answer:

Data is collected as below:

Cognitive Skills

Communication Ability

Sales Performance $

11

19

28000

9

13

22000

8

14

21000

7

13

19000

13

17

28000

8

11

18000

9

14

22000

9

10

16000

11

20

29000

9

16

23000

8

11

14150

13

17

22250

13

17

22250

9

18

20700

13

14

19700

10

19

22150

9

19

21550

12

16

20800

9

13

16450

Data collection technique is used as the simple random sampling. About 19 sales persons are selected randomly from the list of 100 salespersons and data collected for the given three variables. The selected sample size is best for this research study because larger sample size would be expensive and time consuming.

a. Submit the data collected by submitting the SPSS data file with your submission.

Answer:

The results for regression analysis by using SPSS are given as below:

Descriptive Statistics

Mean

Std. Deviation

N

Sales Performance $

21368.4211

3927.22727

19

Cognitive Skills

10.0000

1.97203

19

Communication Ability

15.3158

3.03777

19

Correlations

Sales Performance $

Cognitive Skills

Communication Ability

Pearson Correlation

Sales Performance $

1.000

.504

.784

Cognitive Skills

.504

1.000

.482

Communication Ability

.784

.482

1.000

Sig. (1-tailed)

Sales Performance $

.

.014

.000

Cognitive Skills

.014

.

.018

Communication Ability

.000

.018

.

N

Sales Performance $

19

19

19

Cognitive Skills

19

19

19

Communication Ability

19

19

19

Variables Entered/Removedb

Model

Variables Entered

Variables Removed

Method

1

Communication Ability, Cognitive Skillsa

.

Enter

a. All requested variables entered.

b. Dependent Variable: Sales Performance $

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.797a

.635

.589

2517.46822

a. Predictors: (Constant), Communication Ability, Cognitive Skills

ANOVAb

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

1.762E8

2

8.811E7

13.902

.000a

Residual

1.014E8

16

6337646.253

Total

2.776E8

18

a. Predictors: (Constant), Communication Ability, Cognitive Skills

b. Dependent Variable: Sales Performance $

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

4153.998

3532.717

1.176

.257

Cognitive Skills

326.058

343.472

.164

.949

.357

Communication Ability

911.076

222.971

.705

4.086

.001

a. Dependent Variable: Sales Performance $

3. Find the Correlation coefficient for each of the possible pairings of dependent and independent variables and describe the relationship in terms of strength and direction.

Answer:

The correlation coefficients for each possible pairs are given as below:

Correlations

Cognitive Skills

Communication Ability

Sales Performance $

Cognitive Skills

Pearson Correlation

1

.482*

.504*

Sig. (2-tailed)

.037

.028

N

19

19

19

Communication Ability

Pearson Correlation

.482*

1

.784**

Sig. (2-tailed)

.037

.000

N

19

19

19

Sales Performance $

Pearson Correlation

.504*

.784**

1

Sig. (2-tailed)

.028

.000

N

19

19

19

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

All correlation coefficients are significant at 5% level of significance and all correlations are positive in nature.

4. Find a linear model of the relationship between the three (or more) variables of interest.

Answer:

The regression equation for the given linear model is given as below:

Sales performance = 4153.998 + 326.058*cognitive skills + 911.076*communication skills

5. Explain the validity of the model.

Answer:

Model is valid because the p-value for this regression equation is given as 0.00 which is less than the given level of significance or alpha value 0.05. We reject the null hypothesis that the given regression model is not significant. This means we conclude that the given regression model is significant and that’s why it is valid.


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