In meeting with PLE\'s human resources director, Elizabeth Burke discovered a co

Question

In meeting with PLE's human resources director, Elizabeth Burke discovered a concern about the high rate of turnover in its field service staff. Senior managers have suggested that the department look closer at its recruiting policies, particularly to try to identify the characteristics of individuals that lead to greater retention. However, in a recent staff meeting, HR managers couldn't agree on these characteristics. Some argued that years of education and grade point averages were good predictors. Others argued that hiring more mature applicants would lead to greater retention. To study these factors, the staff agreed to conduct a statistical study to determine the effect that years of education, college grade point average, and age when hired have on retention. A sample of 40 field service engineers hired 10 years ago was selected to determine the influence of these variables on how long each individual stayed with the company. Data are compiled in the Employee Retention worksheet.

Use techniques of regression analysis to assist Elizabeth Burke in evaluating the data in the worksheet Employee Retentio and reaching useful conclusions. Summarize your work in a formal report with all appropriate results and analyses.

Employee Retention YearsPLE YrsEducation College GPA Age Gender College Grad Local 10 18 3.01 33 F Y Y 10 16 2.78 25 M Y Y 10 18 3.15 26 M Y N 10 18 3.86 24 F Y Y 9.6 16 2.58 25 F Y Y 8.5 16 2.96 23 M Y Y 8.4 17 3.56 35 M Y Y 8.4 16 2.64 23 M Y Y 8.2 18 3.43 32 F Y Y 7.9 15 2.75 34 M N Y 7.6 13 2.95 28 M N Y 7.5 13 2.50 23 M N Y 7.5 16 2.86 24 M Y Y 7.2 15 2.38 23 F N Y 6.8 16 3.47 27 F Y Y 6.5 16 3.10 26 M Y Y 6.3 13 2.98 21 M N Y 6.2 16 2.71 23 M Y N 5.9 13 2.95 20 F N Y 5.8 18 3.36 25 M Y Y 5.4 16 2.75 24 M Y N 5.1 17 2.48 32 M Y N 4.8 14 2.76 28 M N Y 4.7 16 3.12 25 F Y N 4.5 13 2.96 23 M N Y 4.3 16 2.80 25 M Y N 4 17 3.57 24 M Y Y 3.9 16 3.00 26 F Y N 3.7 16 2.86 23 M Y N 3.7 15 3.19 24 M N N 3.7 16 3.50 23 F Y N 3.5 14 2.84 21 M N Y 3.4 16 3.13 24 M Y N 2.5 13 1.75 22 M N N 1.8 16 2.98 25 M Y N 1.5 15 2.13 22 M N N 0.9 16 2.79 23 F Y Y 0.8 18 3.15 26 M Y N 0.7 13 1.84 22 F N N 0.3 18 3.79 24 F Y N

Explanation / Answer

We applied multiple regression analysis and the results are as follows from where we observe that the estimated regression model is

Years PLE=-2.74 -0.067 YrsEducation +0.68 College GPA +0.29 Age

The regression model explained only 15% of the variability in retention. Years of education has no effect on retention as p-value of test of coefficient is 0.8513 which is higher than 0.05. Also, college GPA has no effect on retention as p-value of test of coefficient is 0.5692 which is higher than 0.05. However, age has significant effect on retention as p-value of test of coefficient is 0.0376 which is less than 0.05. So, corresponding to one year increase in age there is on an average 0.29 increase in retention.

SUMMARY OUTPUT Regression Statistics Multiple R 0.387559901 R Square 0.150202677 Adjusted R Square 0.079386234 Standard Error 2.725526994 Observations 40 ANOVA df SS MS F Significance F Regression 3 47.26784375 15.75594792 2.121014127 0.114635312 Residual 36 267.4259062 7.428497396 Total 39 314.69375 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept -2.73710846 4.504149393 -0.607685985 0.547210322 -11.87194682 6.397729904 YrsEducation -0.067054294 0.355164691 -0.188797748 0.851311676 -0.787361672 0.653253085 College GPA 0.679981319 1.183551377 0.574526237 0.569184814 -1.720372129 3.080334767 Age 0.291535813 0.135043927 2.158822092 0.037605843 0.017654035 0.56541759

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