AID14708: The HRD manager of a company wants to find a measure which he can use to fix the monthly income of persons applying for a job in the production department. As an experimental project, he collected data on 7 persons from that department referring to years of service and their monthly income

$3.98

SKU: 158cd5d01905 Category:

The HRD manager of a company wants to find a measure which he can use to fix the monthly income of persons applying for a job in the production department. As an experimental project, he collected data on 7 persons from that department referring to years of service and their monthly income.

Years of service

11

7

9

5

8

6

10

Income (Rs. In 1000’s)

10

8

6

5

9

7

11

(a) What is the degree of association (correlation) between years of service and income?

(b) Find the regression equation of income on years of service.

(c) What initial start would you recommend for a person applying for the job having served in a similar capacity in another company for 13 years?

Ans

Years of service

Income (Rs. In 1000’s)

[X-8]

dx

dx2

[Y-8]

dy

dy2

dxdy

11

10

+3

9

+2

4

+6

7

8

-1

1

0

0

0

9

6

+1

1

-2

4

-2

5

5

-3

9

-3

9

+9

8

9

0

0

+1

1

0

6

7

-2

4

-1

1

+2

10

11

+2

4

+3

9

+6

56

56

 

28

 

28

21

(a)   What is the degree of association (correlation) between years of service and income?

Ans

Conclusion: There is a high degree of correlation between year of service and income.

(b)   Find the regression equation of income on years of service.

Ans

Regression equation of income (Y) on years of service (X): –

Y = a=bx

Regression equation of income on years of service

Years of service (X)

Income (Y)

X2

XY

11

10

121

110

7

8

49

56

9

6

81

54

5

5

25

25

8

9

64

72

6

7

36

42

10

11

100

110

56

56

476

469

(c)   What initial start would you suggest for a person applying for the job having served in a similar capacity in another company for 13 years?

Ans

When x = 13 years, the average income would be

y =2 + 0.75x

= 2 + 0.75(13)

= Rs 11,750

Answer: Buy this assignment case study now and get solution instantly. You can download this mba bba assignment solution instantly after payment.

Answer Blurr Actual Answer after purchase