O5. Suppose that the board of directors of X-Innovation, Inc. believe that the s
ID: 3065587 • Letter: O
Question
O5. Suppose that the board of directors of X-Innovation, Inc. believe that the salary is related to years of experience and to the score on the programmer wptitade test An economecan conducted a study for this corporation and reported the following results Annual Salary ($1,000)-7.29+1.148 Years of experience + 0.260 Aptinude Test Score p-value 0.009) (0.034) 0.0014) R-square- 0.92 F-stat-96.88 p-value-0.000 a. Provide the accurate interpretation of the estimated coefficients associated with years of experience and aptitude test score. b. Discuss the significance of the estimated coefficients associated with years of esperience s aptitude test score.Explanation / Answer
Annual Salary($1000's) =7.29+ 1.148* Years of Exp + 0.260*Aptitude test score
a) To interpret slopes:
For every additonal unit of years of experience output annual salary increases by 1.148($1000's) units.
For every additional unit of Aptitude test score output annual income increases by 0.260 units.
b) Test statistic p-value of coefficients:
Years of Experienc: P-value= 0.034
Aptitude test score P-value: 0.0014
and F-statistic= 98.88 and p-value: 0.000
Both p-values are less than significant level 0.05. There is a significant difference between input to an output variable. So, there two variables are good for prediction.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.