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.
= 14.4 – 8.69x1 + 13.5x2
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 regression output follows.
a. Complete the missing entries in this output.
b. Using α = .05, test for overall significance.
c. Did the estimated regression equation provide a good fit to the data? Explain.
d. Use the t test and α = .05 to test H0 : β1 = 0 and H0: β2 = 0.
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