# 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 4.49 5.4 4.86 Commitment 5.37 4.49 5.42 4.45 4.24 5.34 5.62 4.9

(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.]

Back to