Activity I - Your firm is interested in learning more about how its salaries relate to its employees’ tenure with the firm. It has collected the
... [Show More] following data for 25 of its employees.
EMPLOYEE NUMBER
TENURE (YEARS)
SALARY ($)
1
15
53,408
2
32
77,230
3
14
53,664
4
20
55,647
5
25
60,611
6
14
51,991
7
28
71,071
8
30
69,189
9
28
67,359
10
17
50,978
11
14
56,176
12
6
38,865
13
21
58,176
14
11
52,101
15
14
50,941
16
32
73,964
17
29
67,873
18
33
73,860
19
27
60,519
20
16
48,474
21
26
69,574
22
3
34,594
23
14
52,176
24
9
56,444
25
14
57,806
Plot these data points, and describe using regression how salary relates to firm tenure for this group.
Activity II - The data attached contains information on customers’ ratings of your product (CustRate), on a scale of 1 to 100, along with demographic information. The demographic information includes: income (Inc), age (Age), education (Educ), and marital status (Marr). The last variable equals one if the respondent is married and zero otherwise. Assume the data-generating process can be written as:
CustRatei=α+β1Inci+β2Agei+β3Educi+β4Marri+Ui.
Test the hypothesis that income has no impact on customer rating, using a confidence level of 95%. Be sure to provide the reasoning behind your result.
Test the hypothesis that β2=0.05, using a confidence level of 90%. Be sure to provide the reasoning behind your result.
Build a 95% confidence interval for the impact of education on customer rating. Be sure to provide the reasoning for your result.
Build a 95% confidence interval for the impact of being married on customer rating. Be sure to provide the reasoning for your result.
Predict the change in customer rating if a customer’s income increases by $10,000, with no change in age, education, or marital status.
Please sure to use textbook
.Note: Please refer to this textbox: Prince, J. (2018). Predictive Analytics for Business Strategy. McGraw-Hill Education [Show Less]