A Company Hired 25 Employees for Various Positions

question 21

Essay

A company hired 25 employees for various positions.After the candidates were chosen,they wanted to see what the relationship of starting salary was based on years of experience and education level.They assign a 0,1,2,or 3 for high school diploma,bachelor's degree,master's degree,or a doctorate,respectively.The regression model looks like this:
Dependent variable is: Salary
R-squared = 69.6% R-squared (adjusted)= 66.9%
s = 7889 with 25 - 3 = 22 degrees of freedom

-Here are histograms of the leverage and Studentized residuals for the regression model:

The 14th employee who was hired is highlighted in both displays.Do you think this employee is an influential case?

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Definitions:

Secured Creditor

A lender or creditor that has the right to claim specific assets of the borrower if the debtor fails to pay back the owed money.

Debt Commitment

An obligation by an entity to repay borrowed money, typically documented in a formal agreement.

Individual Bondholders

Individuals or entities that own bonds issued by corporations, governments, or other organizations, providing a loan to the issuer in exchange for periodic interest payments and the return of the bond's principal at maturity.

Trustee

An individual or organization that holds and manages assets on behalf of another, often within the context of a trust.