APPLICATION 2: You have been given the following regression tests of significanc
ID: 3317672 • Letter: A
Question
APPLICATION 2: You have been given the following regression tests of significance from a recent study. The study investigated the relationship between cooperation and its antecedent variables in a global automotive supply chain setting. The resulting behavioral relationship was found to be: Cooperation f Power, Asset Specificity, Goal Congruence, Purchase Volume, length of Relationship) Significanoe Standardized Beta Coefficient The results are: alu 0.417 0.000 0.014 Constant Powerc Powerm Asset Specificity Goal Congruence Purchase Volume Length of Relationship R=0.550 R2 . 0.598 0.515 (0.132) 0.289 0.166 0.022 0.136 0.059 0.812 (4.308) 2.465 2.766 1698 2.793 0.926 0.188 0.000 0.355 (2 Pts) Set up the Cooperation Function based on the information above (Recall a Bi-variate Regression function is: Y a+ bX) a. (2Pt) If you were to report statistical evidence of the overall statistical significance of this regression, what test of significance would provide you with that answer? Explain b. (2 pts) As a manager you want to be 95 % confident that the independent variables you report to your boss comply with that level of confidence. Identify those independent variables that do. State what is the directional relationship (+/-) with Cooperation? Explain C (2 pts) What is the unexplained variance in the dependent variable that is not captured by the independent variables. What statistic captures/explains this relationship? d.Explanation / Answer
a. Cooperation function baased on the information above is
Cooperation = 0.515 +0.289 Power + 0.166 Asset+ 0.022 Goal +0.136 Purchase + 0.059 Length of Relationship
b. If we want the overall significance result of the all variable, we can use F-test which compares a model with no predictors to the model that you specify. A regression model that contains no predictors is also known as an intercept-only model. The hypotheses for the F-test of the overall significance are as follows:
H0: The fit of the intercept-only model and your model are equal.
H1: The fit of the intercept-only model is significantly reduced compared to your model.
C. Only Goal and length of relationship have not a directional relationship with cooperation because the p-value is grater than level of significance. For other variable, there is a realtionship.
d. The coefficient of determination, is a measure of how well the variation of one variable explains the variation of the other, and corresponds to the percentage of the variation explained by a best-fit regression line which is calculated for the data.
R2 statistic captures/explains this relationship. 40.2% is the unexplained variance in the dependent variable that is not captured by the independent variables