Question

5. Suppose a company wants to find the determinants of job satisfaction for its employees. The company gathers some anonymous data from its employees and runs a regression with Job Satisfaction (on a 1 to 10 scale) as the response variable, and it gets the following results.

	Regression Coefficients	Units/Scale of Variable
Intercept	−1.469	-----
Relationship with Supervisor	1.391	1 to 5 scale
Quality of Work Environment	0.317	1 to 5 scale
Weekly Hours Worked	.043	Number of hours
Advancement Opportunities	−0.094	to 5 scale

(a) Write out the correct regression equation using the actual variables names and actual slope values.

2. Suppose the standard error for the Quality of Work Environment variable is 0.116. What is the t-statistic for the null hypothesis that b = 0 for this variable?

(c) The p-value for the t-test in (5b) is .0162. At the 95% confidence level, does Quality of Work Environment have a statistically significant effect on Job Satisfaction for this data set? Why?

(d) Keeping the other variables constant, a one unit increase in the Quality of Work Environment has what effect on Predicted Job Satisfaction?

5. What is the t-statistic for the null hypothesis that b = 1 for the Quality of Work Environment variable?

(f) Suppose there is an employee with the following data.

	Value
Relationship with Supervisor	3.5
Quality of Work Environment	4
Weekly Hours Worked	41
Advancement Opportunities	2

      

What is the predicted Job Satisfaction for this employee?

  

Answer 1

a)

The regression equation is defined as,

b)

c)

P-value = 0.0162

Since the P-value = 0.0162 < 0.05 at a 5% significance level (or 95% confidence level), the null hypothesis that b = 0 is rejected hence we can conclude that Quality of Work Environment have a statistically significant effect on Job Satisfaction for this data set

d)

Slope coefficient = 0.317

For a one-unit increase in the Quality of Work Environment, Job Satisfaction score increases by 0.317.

e)

f)

For the given independent variables value,