Ques 1 )

A researcher is interested in learning about resilience. She designs a questionnaire that asks questions on
whether the individual follows through plans, take happenings in stride, can handle many different things, is
determined, is self-disciplined, laughs about different adversities, has self-belief, looks for alternative
solutions etc. on a 7-point scale. She is interested in extracting a few factors on psychological aspects of
resilience. She runs her analysis in SPSS, and finds the following solution:

Correlation Matrix:

Follow Handle Self- Laugh Look for

through Take in many disciplin about Belief in alternative
plans stride things Determined e things self s
Follow through
plans 1 0.258 0.431 0.623 0.548 0.179 0.526 0.273
Take in stride 0.258 1 0.548 0.255 0.153 0.407 0.375 0.494
Handle many
things 0.431 0.548 1 0.601 0.332 0.434 0.529 0.559
Determined 0.623 0.255 0.601 1 0.533 0.240 0.520 0.358
Self-discipline 0.548 0.153 0.332 0.533 1 0.144 0.440 0.180
Laugh about
things 0.179 0.407 0.434 0.240 0.144 1 0.424 0.457
Belief in self 0.526 0.375 0.529 0.520 0.440 0.424 1 0.404
Look for
alternatives 0.273 0.494 0.559 0.358 0.180 0.457 0.404 1

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy. .845

Bartlett's Test of Approx. Chi-Square 396.397

Sphericity
df 28
Sig. .000

Communalities

Initial Extraction
Follow through plans 1.000 .716
Take in stride 1.000 .614
Handle many things 1.000 .697
Determined 1.000 .719
Self-discipline 1.000 .674
Laugh about things 1.000 .567
Belief in self 1.000 .604
Look for alternatives 1.000 .638
 Total Variance Explained

Componen Initial Extraction Sums of Squared Rotation Sums of Squared

t Eigenvalues Loadings Loadings
% of % of % of
Varianc Cumulative Varianc Cumulative Varianc Cumulative
Total e % Total e % Total e %
1 3.855 48.191 48.191 3.855 48.191 48.191 2.651 33.135 33.135
2 1.373 17.159 65.350 1.373 17.159 65.351 2.577 32.215 65.350
3 0.650 8.127 73.478
4 0.534 6.676 80.154
5 0.479 5.991 86.145
6 0.443 5.532 91.678
7 0.400 5.005 96.683
8 0.265 3.316 100

Extraction Method: Principal Component Analysis.

Component Matrix(a)

Component
1 2
Follow through plans .702 -.472
Take in stride .619 .480
Handle many things .816 .174
Determined .764 -.366
Self-discipline .596 -.564
Laugh about things .573 .489
Belief in self .773 -.083
Look for alternatives .669 .437
Extraction Method: Principal Component Analysis.
a 2 components extracted.

Rotated Component Matrix(a)

Component
1 2
Follow through plans .833 .151
 Take in stride .110 .776
Handle many things .464 .694
Determined .804 .270
Self-discipline .821 .011
Laugh about things .070 .750
Belief in self .612 .479
Look for alternatives .175 .780
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 3 iterations.

Analyze this output. Keep in mind the following: whether Factor-Analysis is appropriate, how many
factors are extracted and why, which factor loads highly on which variables, and what are the
common characteristics that you can infer based on factor loadings (i.e., if factor 1 loads highly on
variables x, y and z, can you give a name that appropriately defines all 3 variables x, y and z?).

Ques 2
Income Determinants

A researcher intends to study variations in income of households (in thousands). She conjectures
that certain variables are important in predicting the level of household income, and tests her
conjecture through a multiple regression model. She runs her model in SPSS, and finds the
following report that she wants to analyze.

Model Summary

Std. Error
Mode Adjusted of the
l R R Square R Square Estimate
1 .645 .415 .413 29.52034

ANOVA(b)

Mode Sum of Mean

l Squares Df Square F Sig.
1 Regression 523999.268 3 174666.423 200.432 .000
Residual 737247.113 846 871.450
Total 1261246.381 849
b Dependent Variable: Household income in thousands

Coefficients(a)

Unstandardized Standardized
Coefficients Coefficients
Mode Std.
l B Error Beta t Sig.
1 (Constant) -8.810 5.051 -1.744 .081
Age in years .826 .178 .172 4.648 .000
Years with current
2.962 .180 .521 16.490 .000
employer
Years at current
.142 .184 .025 .775 .438
address
a Dependent Variable: Household income in thousands

The researcher seeks your help with analysis of her results. Answer the following questions related
to the analysis.

1) What are the independent variables in the model? How would you represent the model in an
equation? (4 )
2) What percentage of total variation in the dependent variable is explained by the model?
Justify your answer.
(4 )

3) Are all independent variables in the model jointly significant? Interpret the ANOVA Table
and justify your answer. (4 )

4) Holding all other variables constant, what is the increase in household income due to

i) An increase in age by 1 year

ii) An increase in tenure of 1 year with the current employer
iii) An increase in residency in current address by 1 year

Which of the independent variables are significant at the 5% level? (6 )

5) What other variables in your opinion might be useful in determining household income?
(2 )

Ques 3
A realtor was interested in seeing how home prices varied in a few neighborhoods in 1999 and 2000. She
hypothesized that a few variables should be able to predict the variation in prices. She ran her multiple
regression analysis and found the following results:

Variables Entered/Removed(b)

Model Variables Entered Variables Removed Method

1
If sold in 2000, Days on Market
Before Sold, Home Size in Sq . Enter
Ft(a)

a All requested variables entered.

b Dependent Variable: Purchase Price

Model Summary
 Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .897(a) .804 .798 $35,845.036
a Predictors: (Constant), If sold in 2000, Days on Market Before Sold, Home Size in Sq Ft

ANOVA(b)

Model Sum of Squares df Mean Square F Sig.

1 Regression 470038829443.026 3 156679609814.342 121.942 .000(a)
Residual 114353127546.222 89 1284866601.643
Total 584391956989.248 92
a Predictors: (Constant), If sold in 2000, Days on Market Before Sold, Home Size in Sq Ft
b Dependent Variable: Purchase Price

Coefficients(a)

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 56128.328 14427.926 3.890 .000
Days on Market
Before Sold 135.930 114.280 .057 1.189 .237
Home Size in Sq Ft 73.953 4.005 .889 18.467 .000
If sold in 2000 6322.953 9188.106 .033 .688 .493
a Dependent Variable: Purchase Price

a. Identify the dependent and independent variables.

b. What must have been the regression equation the realtor estimated?
c. Comment on the overall fit of the model. Are all the independent variables jointly
significant?
d. Comment on which variables are statistically significant at 5% level, and interpret the
coefficients corresponding to each variable.
e. Are there other variables that will help you predict home prices?

Sole the following questions:

1. Conduct a t test t test the difference between sociology majors and business majors on scores on a scale
measuring attitude towards business careers. We assume that the attitude scale is interval scale.
Business students Sociology students
Mean = 16.5 Mean = 12.2
Variance = 2.6 Variance = 2.6
Number = 14 Number = 14