An institute conducted a survey where a sample of 50 people were asked whether o

Question

An institute conducted a survey where a sample of 50 people were asked whether or not have been promoted to a better job in their industry during the last 24 months. For each respondent, the variables AGE, EXPERIENCE (years of employment in the industry) and SEX (i.e. male (1) or female (0)) are recorded. A logistic regression was then used to estimate the probability of a promotion within 24 months as a function of the variables. The estimation results are shown below: Use the information in the table to discuss the sign, magnitude and statistical significance of the coefficients. Would you consider the model as a good tool for predicting promotions? Why?

Explanation / Answer

(a) Age and Experience appear to have positive impact on promotion in the past 24 months while Gender/Sex appears to have a negative impact.

Age: For a unit change in the age, the odds of a promotion increases by 3.5%.

Experience: For a unit change in the experience, an extra year of expericne increases the promotion odds by 15.9%.

Sex: With one of the genders as baseline, the model suggest that for that gender, the chances of promotion decreases compared with the other gender.

(b) The model is not particularly good as the significance is poor for all the variables.

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