Stony Brook University Labour Regression Model Data Analysis

Question Description

1. This paragraph(s) describes where the data came from (This is likely from an internal database), the steps that you took to explore the data and if the data is appropriate for the model (You may break this into multiple paragraphs if needed). Where is the data from? How did you filter the data? Examine the assumptions in the instructions and determine the tables and plots that are needed and state if each appears to be met (Boxplot for outliers, Scatter plots for continuous variables, observed by predicted for equal variance and fit diagnostics for normality of error terms). You should reference the appropriate figures and tables in the paragraph. You should always provide a summary statistics table and discuss it (missing data and relevant statistics). The last sentence should be whether the data is appropriate for a linear regression.

2.This paragraph discusses the results. Were the model results significant (Report the f value and the p value from SAS)? What was the R-Squared and Root MSE and what do they imply? Discuss the Parameter estimates and interpret them. You should also discuss if they are meaningful.

3.What is your recommendation for the use of the model? Is further analysis needed? Evaluate the 2 employees from paragraph 1 (Employee 1: Position 1, Location 8, 5 Years of Experience, performance review 7, and $17/hr vs. Employee 2: Position 2, Location 8, 5 Years of Experience, performance review 7 and $17/hr). Are either employee grossly over or under paid according to the model? What action if any should be taken to adjust their salary?

After the body of the memo you should have several figures (Histogram and boxplot of $/hr, scatter plots for each continuous variable compared to the dependent, observed vs predicted, and fit diagnostics) and tables (Summary statistics and Parameter estimates). Format them, number them, and refer to them in the text.

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