This is an individual task. You are asked to answer all the questions in the proposed case.
All students must submit their own file in the midterm assignment evaluation submission point.
You can upload an Excel File, but make sure that it’s clearly indicated what the figures correspond to. Also make sure that the steps are clearly indicated.
Task
A regression analysis has been conducted between the annual income (in 1000 euros) and the work experience (in years) of people with 0.05 significance level. The results are summarized below.
Summary
Table 1.
Regression Statistics
Multiple R 0,96
R Square 0,92
Adjusted R Square 0,82
Standard Error 2,11
Observations 6
Table 2.
df SS MS F Significance F
Regression 1 107,603 107,603 24,276 0,008
Residual 4 17,730 4,432
Total 5 125,333
Table 3.
Coefficients Standard Error t stat p value Lower 95% Upper 95%
Intercept 14,84 3,160 5,491 0,005 8,577 26,124
Variable X 1 2,05 0,276 4,927 0,008 0,595 2,130
Ex. 1. Define the independent and dependent variables. What can you say about the correlation between them? (10 points)
Ex. 2. Interpret R Square. (15 points)
Ex. 3. State the hypotheses tested (15 points)
Ex. 4. Test whether the independent variable have a significant effect on the dependent variable with 0.05 significance level? Write your conclusion.
(25 points)
Ex. 5. Write the regression model and interpret the coefficients. (20 points)
Ex. 6. Estimate the average annual income of a person who has 15 years of work experience. (15 points)
• Design and explain statistical models, perform analysis and solve real-world problems.
• Understand concepts, formulas, and techniques of statistics through applied examples.
• Understand statistical language and develop statistical thinking.
• Interpret results of statistical analysis.