9. A personneldirector has collected data on their employee’s ownership ofthe co
ID: 2916542 • Letter: 9
Question
9. A personneldirector has collected data on their employee’s ownership ofthe company stock versus years employed with the firm. Belowis a Minitab linear regression output for a sample of 8employees.
The regression equation is Shares = 44 + 38.8 Years
S= 91.48 R-Sq =72.0% R-Sq(adj) = 67.3%
Analysis of Variance
Source DF SS MS F P
Regression 1 129173 129173 15.44 0.008
Error 6 50210 8368
Total 7 179383
a) Define the independent and dependent variables?
b) What are the coefficient constants a and b from the regressionequation reported above?
c) Calculate the Coefficient of Correlation.
d) Calculate the Standard Deviation of the dependent variable(Sy).
e) Is the simple linear regression statistically significant? Why?
Explanation / Answer
a) Shares is the dependent variable. Years is the independentvaraible b) a=44 and b=38.8 a is the coefficient ofintercept, b is the coefficient of slope c) and d) To calculate these two we need data. e) the simple linear regression is statisticallysignificant, since P-value(=0.008) is less than 0.05.Related Questions
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