Which group of independent variables is significant in this model using alpha =

Question

Which group of independent variables is significant in this model using alpha = 0.05?

A Ford employee with a bachelor's degree will average _______ more cars sales per month than an employee with an associate's degree.

Ford would like to develop a regression model that would predict the number of cars sold per month by a dealership employee based on the employee's number of years of sales experience (Exp), the employee's weekly base salary before commissions (Salary), and the education level of the employee. There are three levels of education in the sales force-high school degree, associate's degree, and bachelor's degree. The following dummy variables have been defined. Degree ED1 ED2 High School Associate's 1 Bachelor's 1 The following Excel output shows the partially completed regression output from a random sample of employees from the previous month SUMMARY OUTPUT Regression Statistics Multiple R 0.9035 R Square Adjusted RSquare Standard Error 1.7353 Observations ANOVA F Significance F MS Regression 4.0112E-07 Residual 60.23 Total 24 327.84 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 1.6352 1.6448 0.3265 Exp 0.2393 0.1254 0.0709 Salary 0.0127 0.0044 0.0097 2.9845 1.3553 0.0396 ED2 2.5638 1.0705 0.0265

Explanation / Answer

Answer:

Which group of independent variables is significant in this model using alpha = 0.05?

Significant independent variables are:

Salary P =0.0097 which is < 0.05 level.

ED1 Bachelors degree P =0.0396 which is < 0.05 level

ED2 Associates degree P =0.0265 which is < 0.05 level

2.9845-2.5638 =0.4207

A Ford employee with a bachelor's degree will average 0.4207 more cars sales per month than an employee with an associate's degree.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.