The management of a large firm would like to know something about employee morale and the other variables to which it may be related. To study these relationships, each employee in a simple random sample of 27 employees is interviewed and tested to obtain information concerning morale level and the average number of satisfying extra work social contacts experienced during a week. Whether or not the duties the employee usually performs are appropriate to the job title is also determined. The dependent variable Y is measure of morale, the quantitative independent variable, X1 is average number of social contacts, and the following dummy variable coding is used to quantify the qualitative variable: X2 = 1 if yes, X2 = 0 if no. The model including dummy variable and the interaction term was being estimated and a part of computer outputs is below: beta std error t p-value 95% CI for B Lower bound Upper bound Constant 260 134.308 X1 45 6.427 X2 -533.428 184.735 X1X2 32.927 8.315 You are to test to determine if the interaction term is significant. Compute the test statistic.
The management of a large firm would like to know something about employee morale and the other variables to which it may be related. To study these relationships, each employee in a simple random sample of 27 employees is interviewed and tested to obtain information concerning morale level and the average number of satisfying extra work social contacts experienced during a week. Whether or not the duties the employee usually performs are appropriate to the job title is also determined.
The dependent variable Y is measure of morale, the quantitative independent variable, X1 is average number of social contacts, and the following dummy variable coding is used to quantify the qualitative variable:
- X2 = 1 if yes,
- X2 = 0 if no.
The model including dummy variable and the interaction term was being estimated and a part of computer outputs is below:
|
|
beta |
std error |
t |
p-value |
95% CI for B |
|
|
Lower bound |
Upper bound |
|||||
|
Constant |
260 |
134.308 |
|
|||
|
X1 |
45 |
6.427 |
|
|
|
|
|
X2 |
-533.428 |
184.735 |
|
|
|
|
|
X1X2 |
32.927 |
8.315 |
|
|
|
You are to test to determine if the interaction term is significant. Compute the test statistic.
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