Part II1. A company sets up wage rate based on performance rating, the number ta
ID: 3375760 • Letter: P
Question
Part II1. A company sets up wage rate based on performance rating, the number taken, having college degree, and having certificate. of classes the employee has (XI) Class (X2) College Degree Certificate Yes No Yes No No No Yes No 1o No No Yes 12 25 10 Medel Swmmary R Square a Predicters: (Constant Ce.Yes, Degree yes, Performance, Class ANOVA Sum of Squares Mean Square 37.371 2407842 01 149.484 016 149.500 Regression 016 Total a Dependent Variable: wage b. Predictors: (Constant, Cer Yes, Degree yes, Performance, Class Standardized Unstandardized CoefficientsCoeticients Sig Model Performance Class Degree_yes Cer Yes 5.914 341 1.161 -2.199 5.227 148 038 029 39.914 208 8.899 99 39 358 20818.817 524 19.932 016 071 016 034 032 262 a Dependent Variable: Wage 19.(1 points) How many dummy variables are included for this analysis? 20. (2 points) Why do we need dummy variables?Explanation / Answer
Result:
19).
Two dummy variables
20).
The variables college degree and certificate are categorical variables, to include in the regressin model, we need to make dummy variables.
21).
b). Reject Ho. So independent variables can explain the dependent variable.
22).
Having college degree is different from no college degree because the corresponding p value is 0.034 which is significant at 0.05 level.
23).
Having certificate increases the wage level by 5.227.
24).
Wage = 5.914+0.341*performance+1.161*class-2.199*degreeyes+5.227*ceryes.
Class , degree and certificate are significant variables.
25).
Estimated wage =5.914+0.341*3+1.161*0-2.199*1+5.227*0
=4.738
26.
25).
Estimated wage =5.914+0.341*7+1.161*4-2.199*1+5.227*1
=15.973
26).
The employee should have more performance rating, take more classes, no college and have certificate for more wages.