Question

Using the “Experience and Income.xlsx” file, determine the sample correlation coefficient between the annual salary and...

Using the “Experience and Income.xlsx” file, determine the sample correlation coefficient between the annual salary and the job market experience variables. You must submit your actual Excel file with the output as part of the assignment. Annual Salary 1 Years of Job Market Experience 0.121452784 1 Part (b) (2 points) Interpret the sample correlation coefficient you found in part (a). Part (c) (2 points) If we regressed income on experience, what share of the variation in income could be explained by the variation in experience? Explain how you found your answer.

Homework Answers

Answer #1

(B) it is given that sample correlation is 0.12145

Magnitude of correlation coefficient is 0.12145, which is below 0.20. So, we can say that the relationship between dependent and independent variable is very weak

Correlation coefficient is positive, so we can conclude that there is a positive relationship between the variables, i.e. increase in independent variable causes an increase in the dependent variable

(C) Coefficient of determination = r^2

setting r = 0.12145

we get

coefficient of determination = 0.12145^2 = 0.0148

converting to %, we get 0.0148*100 = 1.48%

So, only 1.48% of variation in income could be explained by the variation in experience

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A sales manager collected data on annual sales for new customer accounts and the number of...
A sales manager collected data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersons. In the Microsoft Excel Online file below you will find a sample of data on years of experience of the salesperson and annual sales. Conduct a regression analysis to explore the relationship between these two variables and then answer the following questions. Open spreadsheet Compute b1 and b0 (to 1 decimal). b1 = b0 =...
A sales manager collected data on annual sales for new customer accounts and the number of...
A sales manager collected data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersons. In the Microsoft Excel Online file below you will find a sample of data on years of experience of the salesperson and annual sales. Conduct a regression analysis to explore the relationship between these two variables and then answer the following questions. Salesperson Years of Experience Annual Sales ($1000s) 1 1 84 2 4 93...
part (a) Open the "Union Status and Income. xlsx" file that is posted with the assignment....
part (a) Open the "Union Status and Income. xlsx" file that is posted with the assignment. In order to test whether there is a difference in the variance of income between Union members and non-Union members, use Excel to carry out an "F-Test: Two-Sample for variances" with Alpha =0.05 part (b) Still using the "Union Status and Income .xlsx" file, carry out a t-test in excel (with Alpha=0.05) that tests whether there is a difference in mean income between Union...
The table below shows the relationship between watching TV news (number of days per week) and...
The table below shows the relationship between watching TV news (number of days per week) and fear of crime (0 = very low…. 10=very high) expressed by a sample of 10 people. Would you say that watching the news increases one’s fear of crime? It will save you time to use Excel to answer the questions, but you can use the formula from your book to calculate Pearson’s r]  [15 points] TV news (days watched per week) Fear of crime 1...
A sociologist is interested in the relation between x = number of job changes and y...
A sociologist is interested in the relation between x = number of job changes and y = annual salary (in thousands of dollars) for people living in the Nashville area. A random sample of 10 people employed in Nashville provided the following information. x (number of job changes) 7 4 5 6 1 5 9 10 10 3 y (Salary in $1000) 38 32 34 32 32 38 43 37 40 33 Σx = 60; Σy = 359; Σx2 =...
A sociologist is interested in the relation between x = number of job changes and y...
A sociologist is interested in the relation between x = number of job changes and y = annual salary (in thousands of dollars) for people living in the Nashville area. A random sample of 10 people employed in Nashville provided the following information. x (number of job changes) 3 5 4 6 1 5 9 10 10 3 y (Salary in $1000) 37 32 34 32 32 38 43 37 40 33 Σx = 56; Σy = 358; Σx2 =...
4) The correlation coefficient r is a sample statistic. What does it tell us about the...
4) The correlation coefficient r is a sample statistic. What does it tell us about the value of the population correlation coefficient ρ (Greek letter rho)? You do not know how to build the formal structure of hypothesis tests of ρ yet. However, there is a quick way to determine if the sample evidence based on ρ is strong enough to conclude that there is some population correlation between the variables. In other words, we can use the value of...
SHOW ALL WORK IN EXCEL For this assignment, submit one Excel file. Part 1 sheet is...
SHOW ALL WORK IN EXCEL For this assignment, submit one Excel file. Part 1 sheet is kept blank. Use Part 1 sheet to answer question 1. Put a box around your answer. Round your answer to 4 decimal places. The Statistical Abstract of the United States published by the U.S. Census Bureau reports that the average annual consumption of fresh fruit per person is 99.9 pounds. The standard deviation of fresh fruit consumption is about 30 pounds. Suppose a researcher...
A sociologist is interested in the relation between x = number of job changes and y...
A sociologist is interested in the relation between x = number of job changes and y = annual salary (in thousands of dollars) for people living in the Nashville area. A random sample of 10 people employed in Nashville provided the following information. x (number of job changes) 4 3 5 6 1 5 9 10 10 3 y (Salary in $1000) 38 34 31 32 32 38 43 37 40 33 In this setting we have ?x = 56,...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the...
Waterbury Insurance Company wants to study the relationship between the amount of fire damage and the distance between the burning house and the nearest fire station. This information will be used in setting rates for insurance coverage. For a sample of 30 claims for the last year, the director of the actuarial department determined the distance from the fire station (x) and the amount of fire damage, in thousands of dollars (y). The MegaStat output is reported below. ANOVA table...