Question

Question 1. The following table summarizes the results of the test on the three branches.

SUMMARY
Groups	Count	Sum	Average	Variance
Branch 1	5	266	53.2	177.2
Branch 2	5	340	68	147.5
Branch 3	5	389	77.8	178.7
ANOVA
Source of Variation	SS	df	MS	F	P-value	F crit
Between Groups	1533.73	2.00	766.87	4.57	0.03	3.89
Within Groups	2013.60	12.00	167.80
Total	3547.33	14.00

a) Interpret the results of the ANOVA.

b) Which branch deserves the reward for its performance?

Question 2: Fatima is working on the compensation package of employees, and is considering the following factors that may influence an employee’s salary.

• the average performance score of an employee;
• the number of years an employee has worked for the company; and
• the number of training hours received by the employee.

Identify the independent and dependent variables.

Question 3. The results of the correlation analysis in the Correlation Matrix these variables are depicted below. Use information in the table to discuss the strength and nature of relationship between the four variables.

	Training	Performance	Years of Service	Annual Salary
Training	1
Performance	0.016	1
Years of Service	0.377	-0.268	1
Annual Salary	0.597	0.709	0.286	1

Answer 1

Que.1

a.

P-value for F test is 0.03, which is less than 0.05, hence we conclude that at least one branch's test score is significantly different than others.

b.

Since branch 3 has maximum mean test score, hence branch 3 deserves the reward for its performance.

Que.2

Independent variables = Training, Performance, Years of service

Dependent variable = Annual salary

Que.3

1. There is high degree positive correlation (r = 0.597) between the number of training hours received by the employee and his/her annual salary.

2. There is very high degree positive correlation (r = 0.709) between the average performance score of an employee and his/her annual salary.

3. There is low degree positive correlation (r = 0.286) between the number of years an employee has worked for the company and his/her annual salary.