Chapter 15, Problem 48SE

Recall that in exercise 45 the personnel director for Electronics Associates developed the following estimated regression equation relating an employee’s score on a job satisfaction test to length of service and wage rate.

$\hat{y}=14.4-8.69x_1+13.5x_2$

where

x₁ = length of service (years)

x₂ = wage rate (dollars)

y = job satisfaction test score (higher scores indicate greater job satisfaction)

A portion of the Excel Regression tool output follows.

1. a. Complete the missing entries in this output.
2. b. Using α = .05, test for overall significance.
3. c. Did the estimated regression equation provide a good fit to the data? Explain.
4. d. Use the t test and α = .05 to test H₀: β₁ = 0 and H₀: β₂ = 0.

45. The personnel director for Electronics Associates developed the following estimated regression equation relating an employee’s score on a job satisfaction test to his or her length of service and wage rate.

$\hat{y}=14.4-8.69x_1+13.5x_2$

where

x₁ = length of service (years)

x₂ = wage rate (dollars)

y = job satisfaction test score (higher scores indicate greater job satisfaction)

1. a. Interpret the coefficients in this estimated regression equation.
2. b. Predict the job satisfaction test score for an employee who has four years of service and makes $6.50 per hour.