Suppose the manager of HRD would like to examine the relationship between increment in the salary (Y ) BDT and years of experience(X1)among the employees with different job categories (X2) such as clerical, custodial, and The data on 56 employees on these variables were obtained. Two dummy variables were created for the categorical independent variable X2 as D1=1 if he/she is doing custodial job and 0 for otherwise and D2=1 if s/he is doing managerial job and 0 for otherwise.. The least squares estimate are given below:
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
- Suppose the manager of HRD would like to examine the relationship between increment in the salary (Y ) BDT and years of experience(X1)among the employees with different job categories (X2) such as clerical, custodial, and The data on 56 employees on these variables were obtained. Two dummy variables were created for the categorical independent variable X2 as D1=1 if he/she is doing custodial job and 0 for otherwise and D2=1 if s/he is doing managerial job and 0 for otherwise.. The least squares estimate are given below:
Y = 120 + 10.3X1 + 20.8D1 + 32.4D2
with SE(βˆ1) = 0.876; SE(βˆ2) = 3.26 SE(βˆ2) = 3.87 and SST=12036, SSE=3050
(a) Interpret the estimate of the each of the coefficient corresponding to X1, D1 and D2. What is the difference in the estimated average increment for two employees both doing managerial job whose experience differ by 5 years?
(b) What is the difference in the estimated average increment for two employees both doing managerial job whose experience differ by 5 years?
(c) Is there any difference in increment for two employees with the same years of experience one who is doing Custodial and the other who is doing managerial job? Give reasoning of your answer.
(d) Test whether the experience has positive effect on increment or not at 2.5% level of significance.
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