Question

A researcher wanted to find out if the salary of workers depends on age of employee. Therefore, a simple regression was done and the SPSS outputs are given below

Model Summary

Model R		R Square	Adjusted R Square	Std. Error of the Estimate
1	.126a	.016	.014	1.701

a. Predictors: (Constant), Age of Employee

Coefficientsa

Unstandardized Coefficients				Standardized Coefficients Beta	t	Sig.
Model B			Std. Error
1 (Constant)		3.638	.265		13.716	.000
	Age of Employee	-.018	.007	-.126	-2.724	.007

a. Dependent Variable: Current Salary (ghc)

      a). What is coefficient of the independent variable in this study?   

b). Write down the least squares regression equation appropriate for estimating current salary of worker from age of respondents

c). Determine and explain, in simple words, the value of the coefficient of correlation in the context of this study? No need to use the terms such as strongly positively correlated or strongly negatively correlated as these are considered as technical terms. Use a layperson language to explain the meaning of the coefficient of correlation in the context of this study.

d). What is value and meaning of the coefficient of determination in the output above?                                                                                                                                    

e). What is the meaning of 3.638 in the linear regression equation above (3.638 being the constant or the intercept) in the context of this study?

Answer 1

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Solution

a)

coefficient of indepednet variable = -0.018

Independent variable is the age of employee

.....

b)

salary = 3.638 - 0.018*age

...............

c)

Here R-squared value is 1.6%(correlation coefficient) . This means that only 1.6% of the reliability in data. This is explained by the current salary (depdendent variable) variation explained only by a 1.6% of the dependent variable age of the employee

d)

R2 =0.016

1.6% of variation of salary is explained by age

.............

e)

age can not be 0 , no valid interpreation of constant. This means that when age tends to be lower or tending towards zero, the salary of the employee reaches 3.638, the intercept

..............