- 25 Marks
QMDM – JULY 2020 – L2 – Q2 – Regression Analysis on Training Allowances
Derive the regression equation for staff allowances based on training days, interpret parameters, predict for 11 days, and discuss suitability for 2-month prediction.
Question
The Human Resource Manager of a bank was worried about the number of international training programmes attended by the staff every year(x) and the corresponding allowances (GHe y). A random sample of 10 training programmes gave the following results:
| x (days) | 10 | 3 | 8 | 17 | 5 | 9 | 14 | 16 | 21 | 13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Staff Allowance(y) (GHe) | 116 | 39 | 85 | 159 | 61 | 94 | 143 | 178 | 225 | 134 |
(a) Find an equation of the regression line of Y on X in the form Y = a + bX. (10 marks)
(b) Interpret the slope b and intercept a of your line. (5 marks)
(c) Find the expected allowance to be paid for a training programme that lasted for 11 days. (5 marks)
(d) State and give a reason, whether or not you would use the line to find the expected training lasting for 2 months. (5 marks)
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