A large pharmaceutical company selected a random sample of new hires and obtaine

Question

A large pharmaceutical company selected a random sample of new hires and obtained their job performance ratings based on their first six months with the company. These data were used to build a multiple regression model to predict the job performance of new hires based on age, GPA and gender (female = 1 and male = 0). The results of the analysis are shown below. Answer the following questions: 1) Based on the F-statistic and associated p-value, what is your conclusion at = .05? 2) Which of the three variables are statistically significant? And why? 3) How do you interpret the slope for GPA?

Explanation / Answer

Here dependent variable Y = job performance.

independent variable X1 = age

X2 = GPA

X3 = Gender.

Job Performance = - 60.8 + 4.80 Age + 1.44 GPA + 9.06 Gender

1) Based on the F-statistic and associated p-value, what is your conclusion at = .05? 2) Which of the three variables are statistically significant? And why?

Test statistic F = 30.23

P-value = 0.000

Assume alpha = 5% = 0.05

P-value < alpha

Reject H0 at 5% level of significance.

Conclusion : Atleast one of the mean is differ than 0.

2) Which of the three variables are statistically significant? And why?

We see that P-value for age and gender is 0.000 and 0.001 respectively.

P-value < alpha

Age and gender are significant variable.

And P-value for GPA is 0.549.

P-value > alpha

Accept H0 at 5% level of significance.

Conclusion : Variable GPA is insignificant.

3) How do you interpret the slope for GPA?

We see that slope for GPA is 1.44.

If we fixed age and gender variable and GPA is change by 1 unit then job performance is change by 1.44 units.

P-value < alpha

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