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TABLE 14-11
A weight-loss clinic wants to use regression analysis to build a model for weight-loss of a client (measured in pounds). Two variables thought to affect weight-loss are client's length of time on the weight-loss program and time of session. These variables are described below:
Y = Weight-loss (in pounds)
X₁ = Length of time in weight-loss program (in months)
X₂ = 1 if morning session, 0 if not
X₃ = 1 if afternoon session, 0 if not (Base level = evening session)
Data for 12 clients on a weight-loss program at the clinic were collected and used to fit the interaction model:
Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₁X₂ + β₅X₁X₂ + ε
Partial output from Microsoft Excel follows:
-Referring to Table 14-11, the overall model for predicting weight-loss (Y) is statistically significant at the 0.05 level.
Marginal Cost
The incremental cost of producing an extra unit of a good or service.
Job Enlargement
Increasing the scope of a job by extending the range of its job duties and responsibilities.
Task Variety
The extent to which a job includes a range of different activities requiring varied skills and talents.
Vertical Loading
The method of adding new responsibilities and tasks to a job at the same level of the organization, aimed at enhancing the job's complexity and the employee's autonomy.
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