ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
beta
(Constant) 260
45
X₁
X₂
X₁X2
std error
134.308
6.427
-533.428
32.927 8.315
184.735
It
p-value 95% CI for B
Lower bound
Upper bound
You are to test to determine if the interaction term is significant. Compute the test
statistic.
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Transcribed Image Text:beta (Constant) 260 45 X₁ X₂ X₁X2 std error 134.308 6.427 -533.428 32.927 8.315 184.735 It p-value 95% CI for B Lower bound Upper bound You are to test to determine if the interaction term is significant. Compute the test statistic.
The management of a large firm would like to know something about employee
morale and the other variables to which it may be related. To study these
relationships, each employee in a simple random sample of 27 employees is
interviewed and tested to obtain information concerning morale level and the
average number of satisfying extra work social contacts experienced during a
week. Whether or not the duties the employee usually performs are appropriate to
the job title is also determined.
The dependent variable Y is measure of morale, the quantitative independent
variable, X1 is average number of social contacts, and the following dummy
variable coding is used to quantify the qualitative variable:
X₂ = 1 if yes,
X₂ = 0 if no.
The model including dummy variable and the interaction term was being estimated
and a part of computer outputs is below:
expand button
Transcribed Image Text:The management of a large firm would like to know something about employee morale and the other variables to which it may be related. To study these relationships, each employee in a simple random sample of 27 employees is interviewed and tested to obtain information concerning morale level and the average number of satisfying extra work social contacts experienced during a week. Whether or not the duties the employee usually performs are appropriate to the job title is also determined. The dependent variable Y is measure of morale, the quantitative independent variable, X1 is average number of social contacts, and the following dummy variable coding is used to quantify the qualitative variable: X₂ = 1 if yes, X₂ = 0 if no. The model including dummy variable and the interaction term was being estimated and a part of computer outputs is below:
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