1. Remove insignificant variables after running SPSS.

3 Methods-

Forward multiple linear regression

Removing Highest P value

Backward multiple linear regression

Removing Lowest P value

Stepwise Regression

Does both backward and forward together. SPSS will fetch us models.

2.

Step 1. Regression Equation

Model 1 Equation Job satisfaction = 11.250 + 8.693*Overall quality of work environment

Model 2 Equation Job Satisfaction = 4.436 + 6.011* Overall Quality of work environment+ 6.959
*Relationship with supervisor

*Interpretation*

Step 2. Test of Significance of regression co-efficient

Model 1.

H0: Overall quality of work environment(β1) = 0

Overall quality of work environment(β1) ≠ 0

Since the significance value of overall quality of work environment is less than required level of
significance 0.05, we reject null hypothesis which means that the overall quality of work environment is
significant
Model 2 : H01: Overall quality of work environment(β1) = 0

H11: Overall quality of work environment(β1) ≠ 0

H02: Relationship with superior (β1) = 0

H12: Overall quality of work environment(β1) ≠ 0

Since the significance value of overall quality of work environment and relationship with superior is less
than required level of significance 0.05, we reject null hypothesis which means that the overall quality of
work environment and relationship with superior is significant

Step 3. Overall Test for MLR

Model 1: H0: β1=0

H1: Not all β’s are zero

Since the p-value of F test is less than required level of signifacnce the overall model is found to be
significant.

Model 2: H0: β1 = β2 = 0

H1: Not all β’s are zero

Step 4. Co-efficient of determination

Model 1 Model 2
0.870 0.904

Interpretation

Model 1: 87% of the variation in job satisfaction is explained by the variable overall quality of work
environment.

Model 2: 90.4% of the variation in job satisfaction is explained by the variable overall quality of work
environment and relationship with supervisor

Step 5. Residual analysis:

Both model1 and model 2 are fulfilling the assumptions of MLR where the residuals are normally
distributed, and the model passes homoscedasticity. Hence, the model 2 is
  Curse of dimensionality: No. of columns is more than the no. of rows.
 Adjusted R square is the correct way to judge when using Multiple linear regression and R
square is used when doing SLR.
 R square and adjusted r square both mean the percentage of the error that the model covers.
 Level of significance is by default in SPSS as 0.01 or 1%

Confusion Matrix

 Easiest way to measure the performance of a classification

 Two dimensions viz. “Actual” and “Predicted”


 Accuracy: number of correct predictions

 Precision: number of correct documents returned

 Recall: the number of positives returned

 Specificity: as the number of negatives returned