A Survey Conducted by a Research Team Was to Investigate

question 43

Essay

A survey conducted by a research team was to investigate how the education level, tenure in current employment, and age, are related to annual income. A sample 20 employees is selected and the data is given below. $\begin{array}{|c|c|c|c|}\hline\begin{array}{c}\text { Education (No. of } \\\text { years) }\end{array} & \begin{array}{c}\text { Length of tenure in } \\\text { current } \\\text { employment (No. } \\\text { of years) }\end{array} & \text { Age (No. of years) } & \text { Annual income (\$) } \\\hline 17 & 8 & 40 & 124,000 \\\hline 12 & 12 & 41 & 30,000 \\\hline 20 & 9 & 44 & 193,000 \\\hline 14 & 4 & 42 & 88,000 \\\hline 12 & 1 & 19 & 27,000 \\\hline 14 & 9 & 28 & 43,000 \\\hline 12 & 8 & 43 & 96,000 \\\hline 18 & 10 & 37 & 110,000 \\\hline 16 & 12 & 36 & 88,000 \\\hline 11 & 7 & 39 & 36,000 \\\hline 16 & 14 & 36 & 81,000 \\\hline 12 & 4 & 22 & 38,000 \\\hline 16 & 17 & 45 & 140,000 \\\hline 13 & 7 & 42 & 11,000 \\\hline 11 & 6 & 18 & 21,000 \\\hline 20 & 4 & 40 & 151,000 \\\hline 19 & 7 & 35 & 124,000 \\\hline 16 & 12 & 38 & 48,000 \\\hline 12 & 2 & 19 & 26,000 \\\hline 10 & 6 & 44 & 124,000 \\\hline\end{array}$
a. Determine the estimated multiple linear regression equation that can be used to predict
the annual income given number of years school completed (Education), length of tenure
in current employment, and age.
b. Use the F test to determine the overall significance of the regression relationship.What is the conclusion at the 0.05 level of significance?

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Definitions:

Materials Flow

The movement of physical materials through the supply chain from procurement to production to delivery.

Employee Labor

Refers to the work performed by employees for which they are compensated by an employer.

Inventory Accounts

Accounts used to track the value of a company's stock of goods.

Overapplied Factory Overhead

A situation where the allocated or applied factory overhead costs are greater than the actual factory overhead costs incurred.