The human resource manager at Gamma, Inc. wants to examine the relationship betw
ID: 3321199 • Letter: T
Question
The human resource manager at Gamma, Inc. wants to examine the relationship between annual salaries (Y), the number of years employees have worked at Gamma, Inc. (X1) and whether the employee is male or female (X2). X2 = 0 if male and X2 = 1 if female.
They are also interested in whether the interaction between the two explanatory variables (X1 and X2) has a significant impact on salaries. These data have been collected for a sample of 28 employees and the regression output is shown here.
(A) Use the information shown to estimate the linear regression model.
Annual Salary = 29831.68 + 869.04 * Years Employed - 2396.54 * Gender + 403.93 *Years *Gender.
(B) Identify and interpret the standard error of estimate for the model in part A.
I have answed partA, Could you please help me to answer part B.
Summary measures Multiple R 0.8065 R-Square 0.6504 Adj R-Square 0.6067 StErr of Estimate 6572.3 Regression coefficients Coefficient Std Err t-value p-value Constant 29831.68 3904.56 7.64 0 Years Employed 869.04 266.78 3.258 0.0033 Gender -2396.54 4620.04 -0.519 0.6087 Years & Gender 403.93 350.38 1.153 0.2603Explanation / Answer
b) standard error = 6572.3
S represents the average distance that the observed values fall from the regression line. Conveniently, it tells you how wrong the regression model is on average using the units of the response variable. Smaller values are better because it indicates that the observations are closer to the fitted line.
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