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2. The Postal Service is attempting to reduce the number of complaints made by the public against its workers. In order to facilitate this task, a staff analyst for the Service regresses the number of complaints lodged against an employee last year (Y) on the hourly wage of the employee for the year (X). She obtains the following results:

Y =10.2 - 1.9X
r2 = .73 sb=.87 n=348 t= slope/ sb

Based on these results, answer the following questions:

a) If wages increased by \$1.00, what is the expected effect on the number of complaints received per employee?
b) What percent of the variation in complaints can be explained by wages?
c) At what level of wages can the employee be expected to receive zero (0) complaints? (hint: recalculate the equation with Y=0)
d) Calculate the t-value using the formula above.
e) Can the null hypothesis be rejected at the .05 level of statistical significance that wages have no effect on the number of complaints (Recall the critical values for t-test for a two-tail test is 1.96 and for a one-tail test 1.65)?
f) Discuss the policy implications of the regression analysis.

#### Solution Preview

2. The Postal Service is attempting to reduce the number of complaints made by the public against its workers. In order to facilitate this task, a staff analyst for the Service regresses the number of complaints lodged against an employee last year (Y) on the hourly wage of the employee for the year (X). She obtains the following results:

Y =10.2 - 1.9X
r2 = .73 sb=.87 n=348 t= slope/ sb

Based on these results, answer the following questions:

a) If ...

#### Solution Summary

Variation complaints for levels of wages are given. The policy implications of the regression analysis is examined.

\$2.19