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Multiple regression

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Recall that in Exercise 45 the personnel director for Electronics Associates developed the following estimated
regression equation relating an employee's score on a job satisfaction test to length of service and wage rate.

Y = 14.4 minus 8.69 x1 minus 13.5 x2


X1 = length of service in years
X2 = wage rate in dollars
Y= job satisfaction test score (higher scores indicate greater job satisfaction)

A portion of the Minitab computer output follows.

Predictor Coef StDev t-ratio
Constant 14.448 8.191 1.76
X1 1.555
X2 13.517 2.085

S = 3.773 R-sq ______% R-sq (adj) = __%

Analysis of Variance

Source DF SS MS F
Regression 2 ____ ____ ____
Error ____ 71.17 _____ ____
Total 7 720.0

a. Complete the missing entries in this output.
b. Compute F test using level of significance = .05 to see whether a significant relationship is present.
c. Did the estimated regression equation provide a good fit to the data on employees Explain.
d Use the t test and level of signficance =.05 to test H0: b1 = 0.

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Solution Summary

Completes the missing entries of a multiple regression output. Uses F and t tests to see whether a significant relationship is present.

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