Chapter 15, Problem 53SE

Recall that in exercise 50 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.

ŷ = 14.41 − 8.69x₁ 1 13.52x₂

where

x₁ = length of service (years)

x₂ = wage rate (dollars)

y = job satisfaction test score (higher scores indicate greater job satisfaction)

A portion of the Minitab computer output follows.

Analysis of Variance

Model Summary

Coefficients

Regression Equation

y = 14.41 − 8.69 X1 + 13.52 X2

1. a. Complete the missing entries in this output.
2. b. Compute F and test using α = .05 to see whether a significant relationship is present.
3. c. Did the estimated regression equation provide a good fit to the data? Explain.
4. d. Use the t test and α = .05 to test H₀: α₁ = 0 and H₀: β₂ = 0.