The production manager of High Point Sofa and Chair, a large furniture manufacturer located in North Carolina, is studying the job performance ratings of a sample of 15 electrical repairmen employed by the company. An aptitude test is required by the human resources department to become an electrical repairman. The production manager was able to get the score for each repairman in the sample. In addition, he determined which of the repairmen were union members (code = 1) and which were not (code = 0). The sample information is reported below.
a. Use a statistical software package to develop a multiple regression equation using the job performance score as the dependent variable and aptitude test score and union membership as independent variables.
b. Comment on the regression equation. Be sure to include the coefficient of determination and the effect of union membership. Are these two variables effective in explaining the variation in job performance?
c. Conduct a test of hypothesis to determine if union membership should be included as an independent variable.
d. Repeat the analysis considering possible interactionterms.
Download free solution (doc)