The director of a training program for a large insurance company is evaluating three different methods of training underwriters. The three methods are traditional, CDROM based, and Web based. She...

question(a).
Y = b0 + b1X1 + b2X2 + b3X3 + e
The equation for multiple regression looks like this: Y = b0 + b1 X1 + b2 X2 + b3 X3 + e. The slopes of this problem can be broken down as follows
question(b).
The slope for the proficiency score (X1) is the change in the end-of-training exam score (Y) for a one-unit increase in the proficiency score. The slope for the training method (X2) is the difference in the end-of-training exam score (Y) between traditional and CD-ROM based training. The slope for the interaction term (X3) is the difference in (Y) between traditional & Web-based training.
Slope for the proficiency score is determined by the fact that a one-unit improvement in competence results in a commensurate one-unit rise in the end-of-training exam score (Y) (X1). It is possible to determine the slope of a training approach by comparing the final exam results obtained from traditional classroom education with those obtained from instruction based on CD-ROMs (X2). The slope of the interaction term, X3, is equal to the difference in final test scores, Y, that can be attributed to either traditional classroom instruction or study done entirely online.
question(c).
79.3
If a student received instruction that was delivered via the Internet and achieved a perfect 100 on a test of competence, the typical final exam result would be: Y = b0 + b1(100) + b2(1) + b3 (0)= 61.112 + 0.92(100) + 1.115(1) + 0.118 (0)= 79.3
question(d).
The residuals are plotted against the predicted values of the end-of-training exam score. Residuals are randomly distributed.
Residual analysis: There is a comparison made between the projected values of the final exam score and the residuals. The fact that the residuals do not appear to follow any...