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Salary Regression Analysis: Age & MBA Impact

The document outlines a regression analysis to predict salary based on age and MBA status, showing a strong fit with R^2 = 0.953. ANOVA results indicate at least one significant coefficient, confirming the presence of a regression model. The final regression equation is Salary = 893.588 + 1044.146*Age + 14767.232*MBA, demonstrating that both age and MBA positively impact salary.

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8 views2 pages

Salary Regression Analysis: Age & MBA Impact

The document outlines a regression analysis to predict salary based on age and MBA status, showing a strong fit with R^2 = 0.953. ANOVA results indicate at least one significant coefficient, confirming the presence of a regression model. The final regression equation is Salary = 893.588 + 1044.146*Age + 14767.232*MBA, demonstrating that both age and MBA positively impact salary.

Uploaded by

diennguyen.31241024659
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Salary = B1*Age + B2*MBA + B0

Step 1: Correlation Analysis

Step 2: Model Summary

R^2 = 0.953, Adjusted R^2 = 0.950


● “Fit”: The regression line has a strong fit with the data
● “Variation explained”: 95% variation of the Salary is explained by the Age and
MBA.
Step 3: ANOVA results
H0: Coefficient = 0 (There is no regression line)
H1: At least 1 coefficient ≠ 0 ( There is a regression model)

F = 323.035, p<0.001
=> Reject H0, Accept the H1 => There is at least 1 coefficient significant.
=> We have a regression model.
Step 4: Coefficient Assessment

Constant: t=0.49, p>0.05 => The constant is not significant


Age: t=24.777, p<0.001 => The Age is significant
MBA: t=10.924, p<0.001 => The MBA is significant

Step 5: Regression model


● Regression model with Unstandardized Coefficients:
Salary = 893.588 + 1044.146*Age + 14767.232*MBA
Forecasting: If employee with Age = 30 and have a MBA,
=> Salary =893.588 + 1044.146*30 + 14767.232*1= $46985.2
● Regression model with Standardized Coefficient
Salary = 0.975*Age +0.43*MBA (*note: Unit in standard deviation)
Age and MBA have a positive impact on Salary with p<0.001
If Age and MBA increase 1 standard deviation, the Salary will increase 1.405 Standard
deviation

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