PLEASE HELP ANSWER #3 Financial Marketing Operations $135,582.27 $125,989.92 $12

ID: 3324983 • Letter: P

Question

PLEASE HELP ANSWER #3

Financial Marketing Operations $135,582.27 $125,989.92 $129,553.29 $135,426.22 $123,439.60 $128,150.83 $134,726.22 $158,414.41 $120,351.24 $138,873.62 $130,934.57 $124,900.67 $122,578.46 $140,786.13 $118,416.84 $133,952.16 $157,307.11 $105,879.21 $153,156.53 $139,261.86 $114,906.87 $144,597.23 $154,081.94 $136,396.50 $135,916.73 $155,073.01 $112,064.58 $118,217.71 $144,127.48 $113,453.44 $144,097.01 $133,154.61 $123,738.69 $148,495.99 $130,968.66 $104,627.98 $138,576.64 $131,832.89 $114,838.12 $144,179.63 $149,814.60 $115,398.44 $155,430.62 $159,357.56 $110,232.92 $133,335.19 $113,012.19 $128,320.46 $131,279.97 $140,644.14 $109,005.04 $116,162.53 $142,269.45 $118,487.06 $142,305.15 $150,858.54 $106,699.42 $134,600.44 $131,408.88 $125,267.06 $118,238.48 $154,915.34 $133,316.04 $127,424.20 $136,067.64 $127,310.16 $131,225.22 $132,107.31 $106,812.38 $140,835.55 $118,676.47 $134,238.26 $114,585.12 $139,290.02 $106,776.30 $148,542.73 $125,516.73 $138,147.69 $126,522.57 $130,221.78 $119,827.83 $141,201.27 $138,525.15 $143,427.40 $115,385.97 $139,710.62 $165,039.99 $144,051.65 Salary AgeEmployees Supervised S137,624.14 40 $121,427.8535 129,698.40 54 S129,236.51 47 5143,318.11 49 S125,504.59 55 S146,765.01 50 127,260.60 56 5140,695.97 46 S143,647.16 43 5115,120.62 57 S134,346.35 57 5135,158.38 48 127,784.69 57 $139,108.7552 5146,236.83 46 5124,124.40 36 S132,625.07 43 S134,22946 35 117,669.48 58 S132,578.73 48 S139,453.55 56 134,417.38 37 S122,653.40 56 $127,997.92 36 137,109.90 44 130,722.02 36 117,623.28 50 5123,194.16 43 S137,173.84 52 S131,408.94 38 The following data are the results from an annual survey on the salaries of managers in the state of NJ. Besides the annual salary reported by the manager you also have the age of the manager at the time of the survey and the number of employees said manager directly supervises Assume the samples are representative of the population of NJ managers 550 485 518 516 573 502 587 509 562 574 460 537 540 511 556 584 496 530 536 470 530 Using multiple regression analysis to estimate the annual salaries: 1. Test for the overall and individual relationships at the 0.01 level of significance. Int t the results 8 pts.] 2. What should be your equation to estimate the annual salary? Explain your answer 8 pts.] 3. Interpret the coefficients of your equation 8 pts.] 4. What is the expected annual salary f a manager that supervises an and it is 55 of 400 employees 537 490 511 548 average s old? 8 pts.] 470 492 548 525 5. What is the expected annual salary for a manager that supervises an and it is 35 years old? Interpret results from 5 & 4 average of 400 employees 8 pts.] 6. Interpret the coefficient of determination of your regression analysis 8 pts.]

Explanation / Answer

Question 3

Solution:

Required regression output for the given data is summarised as below:

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.99997406

R Square

0.999948121

Adjusted R Square

0.999944415

Standard Error

62.7550972

Observations

ANOVA

Significance F

Regression

2125404256

1062702128

269844.479

1.02303E-60

Residual

110269.6623

3938.202225

Total

2125514525

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

408.343927

202.1019643

2.020484701

0.052991456

-5.643174551

822.3310286

Age

-4.062891528

1.494498876

-2.71856446

0.011126574

-7.124233657

-1.001549398

Employees Supervised

249.8584252

0.342913905

728.633111

1.9237E-61

249.1559979

250.5608525

Regression equation for the prediction of salary is given as below:

Expected Annual Salary in $ = 408.343927 – 4.0629*Age + 249.8584*Employees supervised

For this regression model, dependent or response variable is given as annual salary while independent or explanatory variables for this model are given as age and employees supervised.

For this regression equation, the y-intercept is given as 408.3439 which indicate the value of expected annual salary when age and employees supervised are considered as zero.

The slope for the independent variable or explanatory variable age is given as -4.0629. This negative slope indicates the decrement in expected annual salary as per one year increment in age. The p-value for significance of this coefficient is given as 0.01, which means the variable age is statistically significant.

The slope for the independent variable is given as 249.8584. This positive slope indicates the increment in expected annual salary as number of employees is increased by one. The p-value for this coefficient is given as 0.00, which indicate that the given variable is statistically significant.

For this regression model, both independent variables are statistically significant, so we can use this regression equation for the further prediction of expected annual salary.