Statistics: Confidence Intervals – Calculation – #397


Question: Correlation, Regression, and Prediction: In a study of employee stock ownership plans, data on satisfaction with the plan and the amount of organizational commitment were collected at 8 companies. Results are given in the accompanying table, which is based on “Employee Stock Ownership and Employee Attitudes: A Test of Three Models,” by Klein, Journal of Applied Psychology, Vol.72, No. 2.

Satisfaction 5.05 4.12 5.39 4.17 4.00 4.49 5.40 4.86
Commitment 5.37 4.49 5.42 4.45 4.24 5.34 5.62 4.90

(a) At the 0.05 level of significance, test the claim that the population correlation coefficient is equal to 0.

[Paste your STATDISK picture here or on a separate page. Express the conclusion of your test in the words of this problem.]

(b) Given a satisfaction value of 5.00, find the best predicted value of commitment.

[Show the regression equation and the prediction, if applicable.]

(c) For an individual employee with a satisfaction level of 5.00, find the 95% prediction interval for the predicted value of commitment.

[Use your STATDISK printout and apply relevant measures to the formula in the block on page 536. Show your complete solution.]

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