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Regression Analysis

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Using Excel as your processing tool, work through three simple regression analyses. For each, make a graph, determine the equation of the regression line, and find the r-squared value.

First run a regression analysis using the BENEFITS column of 288 data points in the AIU data set as the independent variable and the INTRINSIC job satisfaction column of 288 data points in the AIU data set as the dependent variable. Create a graph with the trendline displayed. What is the least squares regression line equation? What are the slope and the y-intercept? What is the R-squared value?

Next, run a regression analysis using the BENEFITS column of 288 data points in the AIU data set as the independent variable and the EXTRINSIC job satisfaction column of 288 data points in the AIU data set as the dependent variable. Create a graph with the trendline displayed. What is the least squares regression line equation? What are the slope and the y-intercept? What is the R-squared value?

Next, run a regression analysis using the BENEFITS column of 288 data points in the AIU data set as the independent variable and the OVERALL job satisfaction column of 288 data points in the AIU data set as the dependent variable. Create a graph with the trendline displayed. What is the least squares regression line equation? What are the slope and the y-intercept? What is the R-squared value?

Finally, make very specific comments and give reasons regarding any similarities or differences in the output results. Which regression produces the strongest correlation coefficient result? Why?

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Solution Summary

This case study problem uses regression analyses (in Excel) to study the relationship between benefits and job satisfaction. The solution includes analyses in an Excel worksheet and a discussion of the results in a Word document.

Solution Preview

Analyses are in the attached Excel worksheet. The answers and discussion are in the Word document.

ASSIGNMENT TEMPLATE for Week 5 IP
Please use this template to submit your assignment, by copying and pasting it into Word. Please note that points have been set aside for careful use of the template. The template parallels the assignment requirements closely and is therefore likely to help you in meeting the requirements.

Please note the page limits indicated and conform to them (3 pages) Points (total points 150)
1. Run a simple regression calculation using BENEFITS as the independent variable and INTRINSIC job satisfaction as the dependent variable using all 288 data points from the AIU dataset. The results of the regression will need to be stated as a complete equation resembling: Y = bx + a.

INTRINSIC = -0.0115(BENEFITS) + 5.2669

Give the graph of the trendline below:

Provide the summary results of the regression copied and pasted below from your Excel output, as shown in the text. Do not submit Excel files.

slope -0.0115
intercept 5.266942
r-squared 0.000126

State regression results below in mathematical form (i.e. in the form y=bx+a, and explain slope and y-intercept and their signs, and explain their meanings:

y = -0.0115x + 5.2669

The slope is -0.0115, which indicates than an increase by 1 in the BENEFITS score is associated with a decrease by 0.0115 in the INTRINSIC score. The slope is negative, which indicates a negative correlation between the two variables (being more satisfied with benefits is associated with lower intrinsic job satisfaction and vice versa).

The y-intercept is 5.2669, which indicates that a BENEFITS score of 0 is associated ...

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