My task is to perform a regression analysis on ten people based upon their scores for 3 variables. The independent variables are extraversion, cognitive skills, and communication ability. The dependent variable is sales performance. Based on this regression analysis, I have to hire 2 people from a listing based upon their scores for the same 3 independent variables and justify the hiring; here are the list of applicants:
Applicant Extraversion Cognitive Skills Communication Ability
John Smith 5 9 17
Jane Doe 4 6 11
Burt McIntyre 7 13 19
Elizabeth Reddin 3 5 7
James Golstein 6 12 15
Shawn George 4 10 7
Susan Williams 3 6 8
Jose Valencia 5 10 12
Levi Ogletree 6 14 20
Pat Sylvester 2 8 6
I performed the regression analysis, which is attached. My problem is that I don't understand how to interpret the analysis for the problem. So, far, I understand that 74% of sales earnings are explained by the 3 independent variables (based upon the adjusted R square of .748.
How then do I use this regression analysis to decide which 2 people to hire? My instructor has also given us a formula to use which I don't understand. Here is the instruction: Interpret the results and write the regression equation using the following format:
Y = (b1 x X1) + (b2 x X2) + (b3 x X3) + a, where a is the intercept, and the bs are regression coefficients.
This solution contains step-by-step calculations to determine a linear regression fit model on the scores of the three variables for 10 people.