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Personality traits and job performance. When attempting to predict job performance using personality traits, researchers typically assume that the relationship is linear. A study published in the Journal of Applied Psychology (Jan. 2011) investigated a curvilinear relationship between job task performance and a specific personality trait—conscientiousness. Using data collected for 602 employees of a large public organization, task performance was measured on a 30-point scale (where higher scores indicate better performance) and conscientiousness was measured on a scale of -3 to +3 (where higher scores indicate a higher level of conscientiousness).

a. The coefficient of correlation relating task performance score to conscientiousness score was reported as r = 0.18. Explain why the researchers should not use this statistic to investigate the curvilinear relationship between task performance and conscientiousness.

b. Give the equation of a curvilinear (quadratic) model relating task performance score (y) to conscientiousness score (x).

c. The researchers theorized that task performance increases as level of conscientiousness increases, but at a decreasing rate. Draw a sketch of this relationship.

d. If the theory in part c is supported, what is the expected sign ofβ2in the model, part b?

e. The researchers reportedβ^2=0.32with an associated p-value of less than 0.05. Use this information to test the researchers’ theory atα=0.05

Short Answer

Expert verified

a. Researchers cannot use the correlation coefficient to investigate the curvilinear relationship amongst the variable as the correlation coefficient indicates the extent to which two variables move together but does not account for the curvilinear relationship the two variables might have.

b. The quadratic model equation relating task performance (y) to conscientiousness score (x) is y=β0+β1x+β2x2.

c. Graph

d. The curve is downward sloping, the value of β2 which measures the slope of the curvature will be negative.

e. At 95% confidence level, β20.

Step by step solution

01

Interpretation of r

The coefficient of correlation value, r = 0.18 which indicates a positive relation between y and x. However, researchers cannot use the correlation coefficient to investigate the curvilinear relationship amongst the variable as the correlation coefficient indicates the extent to which two variables move together but does not account for the curvilinear relationship the two variables might have.

02

Second-order model equation

The quadratic model equation relating task performance (y) to conscientiousness score (x) is y=β0+β1x+β2x2.

03

Graph

The relationship between y and x where y increases with x but at a decreasing rate can be shown using a downward sloping curve.

04

Sign of β2

Since the curve is downward sloping, the value of β2which measures the slope of the curvature will be negative.

05

Significance of β2

H0:β2=0Ha:β20

Here, t-test statistic=β^3sβ^3

H0is rejected if p-value < α. For α=0.05, it is mentioned that p-value is less than 0.05

Sufficient evidence to rejectH0 at 95% confidence interval.

Therefore, β20

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Most popular questions from this chapter

Question: Bus Rapid Transit study. Bus Rapid Transit (BRT) is a rapidly growing trend in the provision of public transportation in America. The Center for Urban Transportation Research (CUTR) at the University of South Florida conducted a survey of BRT customers in Miami (Transportation Research Board Annual Meeting, January 2003). Data on the following variables (all measured on a 5-point scale, where 1 = very unsatisfied and 5 = very satisfied) were collected for a sample of over 500 bus riders: overall satisfaction with BRT (y), safety on bus (x1), seat availability (x2), dependability (x3), travel time (x4), cost (x5), information/maps (x6), convenience of routes (x7), traffic signals (x8), safety at bus stops (x9), hours of service (x10), and frequency of service (x11). CUTR analysts used stepwise regression to model overall satisfaction (y).

a. How many models are fit at step 1 of the stepwise regression?

b. How many models are fit at step 2 of the stepwise regression?

c. How many models are fit at step 11 of the stepwise regression?

d. The stepwise regression selected the following eight variables to include in the model (in order of selection): x11, x4, x2, x7, x10, x1, x9, and x3. Write the equation for E(y) that results from stepwise regression.

e. The model, part d, resulted in R2 = 0.677. Interpret this value.

f. Explain why the CUTR analysts should be cautious in concluding that the best model for E(y) has been found.

Question: Suppose the mean value E(y) of a response y is related to the quantitative independent variables x1and x2

E(y)=2+x1-3x2-x1x2

a. Identify and interpret the slope forx2.

b. Plot the linear relationship between E(y) andx2forx1=0,1,2, where.

c. How would you interpret the estimated slopes?

d. Use the lines you plotted in part b to determine the changes in E(y) for each x1=0,1,2.

e. Use your graph from part b to determine how much E(y) changes when3x15and1x23.

Suppose you fit the regression model Ey=β0+β1x1+β2x2+β3x22+β4x1x2+β5x1x222 to n = 35 data points and wish to test the null hypothesis H0:β4=β5=0

  1. State the alternative hypothesis.

  2. Explain in detail how to compute the F-statistic needed to test the null hypothesis.

  3. What are the numerator and denominator degrees of freedom associated with the F-statistic in part b?

  4. Give the rejection region for the test if α = .05.

Consider relating E(y) to two quantitative independent variables x1 and x2.

  1. Write a first-order model for E(y).

  2. Write a complete second-order model for E(y).

Buy-side vs. sell-side analysts’ earnings forecasts. Refer to the Financial Analysts Journal (July/August 2008) comparison of earnings forecasts of buy-side and sell-side analysts, Exercise 2.86 (p. 112). The Harvard Business School professors used regression to model the relative optimism (y) of the analysts’ 3-month horizon forecasts. One of the independent variables used to model forecast optimism was the dummy variable x = {1 if the analyst worked for a buy-side firm, 0 if the analyst worked for a sell-side firm}.

a) Write the equation of the model for E(y) as a function of type of firm.

b) Interpret the value ofβ0in the model, part a.

c) The professors write that the value ofβ1in the model, part a, “represents the mean difference in relative forecast optimism between buy-side and sell-side analysts.” Do you agree?

d) The professors also argue that “if buy-side analysts make less optimistic forecasts than their sell-side counterparts, the [estimated value ofβ1] will be negative.” Do you agree?

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