The director of a training program for a
large insurance company has the business objective of determining which
training method is best for training underwriters. The three methods to be
evaluated are classroom, online, and courseware app. The 30 trainees are
divided into three randomly assigned groups of 10. Before the start of the
training, each trainee is given a proficiency exam that measures mathematics
and computer skills. At the end of the training, all students take the same
end-of-training exam. The results are organized and stored in Underwriting .
Develop a multiple regression model to
predict the score on the end-of-training exam, based on the score on the
proficiency exam and the method of training used. For (a) through (k), do not
include an interaction term.
a. State the multiple regression equation.
b. Interpret the regression coefficients in
(a).
c. Predict the mean end-of-training exam
score for a student with
a proficiency exam score of 100 who had
courseware appbased training.
d. Perform a residual analysis on your
results and determine whether the regression assumptions are valid.
e. Is there a significant relationship
between the end-of-training exam score and the independent variables
(proficiency score and training method) at the 0.05 level of significance?
f. At the 0.05 level of significance,
determine whether each independent variable makes a contribution to the
regression model. Indicate the most appropriate regression model for this set
of data.
g. Construct and interpret a 95% confidence
interval estimate of the population slope for the relationship between the
end-oftraining exam score and the proficiency exam score.
h. Construct and interpret 95% confidence
interval estimates of the population slope for the relationship between the
end-oftraining exam score and type of training method.
i. Compute and interpret the adjusted r2.
j. Compute the coefficients of partial
determination and interpret their meaning.
k. What assumption about the slope of
proficiency score with end-of-training exam score do you need to make in this
problem?
l. Add interaction terms to the model and,
at the 0.05 level of significance, determine whether any interaction terms make
a significant contribution to the model.
m. On the basis of the results of (f) and
(l), which model is most appropriate? Explain.