Question

Introduction: The Chartered Financial Analyst (CFA) designation is the de facto professional certification for the financial industry. Employers encourage their prospective employees to complete the CFA. Daniella Campos, an HR manager at Solid Rock Investment, is reviewing 10 job applications. Given the low pass rate for the CFA Level 1, Daniella wants to know whether or not the 10 prospective employees will be able to pass it. Historically, the pass rate is higher for those with work experience and a good college GPA. With this insight, she compiles the information on 100 current employees who took the CFA level 1 last year, including the employee’s success on it(1 for pass, 0 for fail), the employee’s college GPA, and years of work experience.

Interpret the regression coefficients for college GPA, and years of work experience for the model.

I've already found the model: p hat= e^(-4.875+.711x1+.256x2)/1+e^(-4.875+.711x1+.256x2)

Answer 1

1. First we need to obtain and

2. Here

And

Both are greater than one .

3. If both the coefficients are statiscally significant then

a) For every one unit change in GPA , the log odds of success (versus failure) increases by 0.711 unit.

b) For every one unit change in years of work experience, the log odds of success (versus failure) increases by 0.256 unit .