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Question 1
Shown below are rental and leasing revenue figures for office machinery and equipment in the United States over a
seven-year period according to the U.S. Census Bureau. Use these data to run a linear regression and then forecast
the rental and leasing revenue for the year 2012.
Year Rental and Leasing ($ millions)
2004. 2004 5,860
2005. 2005 6,632
2006. 2006 7,125
2007. 2007 6,000
2008. 2008 4,380
2009. 2009 3,326
2010. 2010 2,642
Question 2
Suppose a researcher gathered survey data from 19 employees and asked the employees to rate their job
satisfaction on a scale from 0 to 100 (with 100 being perfectly satisfied). Suppose the following data represent the
results of this survey. Assume that relationship with supervisor is rated on a scale from 0 to 50 (0 represents poor
relationship and 50 represents an excellent relationship), overall quality of the work environment is rated on a scale
from 0 to 100 (0 represents poor work environment and 100 rep resents an excellent work environment), and
op portunities for advancement is rated on a scale from 0 to 50 (0 represents no opportunities and 50 represents
excellent opportunities).
Answer the following questions:
A) What is the regression formula?
B) How reliable do you think the estimates will be based on this formula? How can you tell?
C) Are there any variables that do not appear to be good predictors of Job satisfaction? How can
you tell?
D) If a new employee reports that her relationship with her supervisor is 40, finds the quality of the work environment
to be scored at 75, works 60 hours per week and rates her opportunities for advancement to be at 30, what would
you expect her job satisfaction score to be?
Job satisfaction
55
20
85
65
45
70
35
60
95
65
85
10
75
80
50
90