Regression Analysis

1. First run a **regression analysis **using the BENEFITS column of all data points in

the AIU data set as the independent variable and the INTRINSIC job satisfaction column of all data points in the AIU data set as the dependent variable. Create a graph with the trend line displayed. What is the least squares regression line equation? What are the slope and the y-intercept? What is the R-squared value?

Trend line for benefits and intrinsic satisfaction

Regression line

Y = 5.23234578 – 0.0171399 X where Y is the intrinsic satisfaction and X is benefits.

The Y intercept is 5.23234578 while the slope is 0.0171399

The R2 which is the correlation of determination is 0.0002967

1. Next, run a **regression analysis **using the BENEFITS column of all data points in

the AIU data set as the independent variable and the EXTRINSIC job satisfaction column of all data points in the AIU data set as the dependent variable. Create a graph with the trend line displayed. *What* is the least squares regression *line* equation? What are the slope and the y-*intercept*? What is the R-squared value?

*Regression Analysis *2

Regression line

Y= 5.37893482 – 0.0945473X where Y is extrinsic satisfaction and X is benefits

The Y intercept is 5.37893482 and the slope of the regression is – 0.0945473

R2 which is the correlation of determination in this case is 0.00334873

1. Next, run a regression analysis using the BENEFITS column of all data points in

the AIU data set as the independent variable and the OVERALL job satisfaction column of all data points in the AIU data set as the dependent variable. Create a graph with the trend line displayed. What is the least squares regression line equation? What are the slope and the y-intercept? What is the R-squared value?

The regression line

Y = 4.32392197 – 0.0106942 X

Where Y is overall satisfaction and X is benefits

R2 which is the correlation of determination is 0.000064971

1. Finally, make very specific comments and give reasons regarding any similarities or differences in the output results. Which regression produces the

Regression **Analysis** 2

strongest correlation coefficient result? Why?

From the above outputs on the regression estimation all the regression lines have a positive autonomous value, also all the regression lines have a negative slope meaning that the relationship that exists between the dependent and independent variables is an inverse relationship.

The extrinsic and benefits relationship has the highest correlation of determination, also the relationship has the highest correlation coefficient, this can be explained by the fact that benefits will result to lower external satisfaction, this can be explained by the fact that when pension plans and insurance deductions are made on an individuals income he or she will have less real income levels and this will result to lower external satisfaction.

REFERENCE:

Daniel Bridge (1963) Statistics: An Introduction to Quantitative Economic Research, Rand McNally publishers, Michigan

Bluman A. G. (2007) Elementary statistics, (4th edition) McGraw-Hill Companies, New York

www.mycampus.aiu-online.com/courses/QMB350/Assignment_Assets/DataSetandDataSetKey _0701B.xls

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