Question: The Human Resources Manager of a financial services firm is interested in examining the number of days lost and overtime paid to its upper-level clerical employees. She collects a variety of information and provides this to you for analysis. The data is below:

‘ID’ is the employee’s identification number. They are unique to each employee.

‘Rate’ is the employee’s performance rating. 3 = satisfactory; 4 = superior; 5 = excellent

‘Overtime’ is the amount (in pounds) that the individual was paid in overtime in the previous year.

‘Grade’ is the individual’s grade in the firm’s hierarchy. The higher the grade, the more senior the individual.

‘Bank Quals.’ takes on the value 1 if the individual has obtained banking qualification; 0 otherwise.

‘Age’ is the employee’s age in years.

‘Tenure’ is the employee’s tenure in years.

‘Sex’ is 1 if the individual is female; 0 if male. ‘Married’ is 1 if the individual is married; 0 otherwise.

‘Hours absent’ is the number of hours the employee was absent from work in the previous year.

Required

1. Compute a Pearson’s correlation coefficient using hours lost absence and overtime payments. Is this correlation coefficient statistically significant at the 5% level?
2. Using the data provided estimate a multiple regression predicting hours lost due to absence.
3. Describe these results.

 If an individual were to improve their performance rating from good to superior, by how much would you expect absenteeism to change?

 Using the data provided estimate a multiple regression predicting overtime payments

 Describe these results

 If an individual were to be promoted by one grade, by how much would you expect overtime to increase?

 What advice can you give to the HR manager?

Price: $2.99

Solution: The downloadable solution consists of 9 pages
Deliverable: Word Document