Question 2 Read the following case extract and answer ALL questions… Question 2Read the
Question 2 Read the following case extract and answer ALL questions… Question 2Read the following case extract and answer ALL questions that follow.A management researcher is compiling a list of practices of managers that he thinks correlate with improved return on shareholders’ equity. He suspects that the average number of peer-reviewed articles read weekly by the Chief Executive Officer (CEO) of a JSE-listed company could predict the return on shareholders’ equity (ROE, measured in %). To test the veracity of his suspicion, he e-mailed a validated questionnaire to 200 CEOs of JSE-listed companies and received back 127 questionnaires of which 120 were usable (see Table 2.1, below). Table 2.1, below, is an excerpt of the data gathered from the 120 CEOs. Each row in the table shows the number of peerreviewed articles read weekly by CEO and the return on shareholders’ equity of the JSE-listed companies of which the CEO is the leader.Table 2.1: Excerpt of data gathered from 120 CEOs of JSE-listed firms.Respondents’#Average of peer-review article read weekly by CEOReturn on Shareholder’s equity (REO in, %)1412,502110,423518,04622,755827,166317,85729,218731,8916,6210312,2211514,81239,5013412,2614416,5015518,64………120619,5With the help of a data analyst, the CEO conducted the analysis of the data using IBM SPSS Statistics version 25 and the following output was generated:Table 2.2: Test of Normality of ROETable 2.2 Test of Normality of REO Tests of normality Kolmogorov-SmirnovaShapiro-Wilk StatisticdfSig.StatisticdfSig.ROE0.0981202000.9731200.167a. Lilliefors Significance CorrectionTable 2.3: Correlation of Average Number of Articles Read – ROE Correlations Average number of articles readROEAverage number of articles read Pearson1000799** Correlation 000 Sig.(2-tailed) N120120ROE Pearson799**1000 Correlation 000 Sig.(2-tailed) N120120**. Correlation is significant at the 0.05 level (2-tailed). Table 2.4: Regression Model Summary of Average Number of Articles – ROE Model SummarybModelRR SquareAdjusted R squareStd Error of the10.799a0.6380.6246.992a. Predictors: (Constant), Average number of articles readb. Dependent Variable: ROE Table 2.5: Results of ANOVA for the Average Number of Articles Read – ROE model ANOVAaModel Sum of squares dfMean SquareFSig1 Regression1089.41611.089.416153.919.000b Residual835.1851187.0778 Total1924.601119 a. Dependent Variable: ROEb. Predictors: (Constant), Average number of articles read Table 2.6: Regression Coefficients for the Average Number of Articles Read – ROE ModelCoefficients a Unstandardized Unstandardized Coefficients Coefficients BStd. ErrorBetatSig.1 (Constant)3.5251.897 1.935.041 Average number of articles read2.4980.453.7996.528.000REQUIRED:2.1 State the aim of the study. (2 marks)2.2 Identify the Independent (IV) and dependent (DV) variables implicit in the study. (2 marks)2.3 Formulate the null and alternative hypotheses for the study. (2 marks)2.4 Based on the output, comment on the strength, direction and significance of the correlation between the independent and dependent variables. Please quote the relevant statistic to substantiate your answer. (6 marks)2.5 On the basis of the regression output and using the standard reporting format, comment on the relationship between “Average number of articles read” and “ROE”. (6 marks)2.6 State the regression equation of the ‘Average number of articles – ROE’ model. (2 marks) Accounting Business Managerial Accounting BBA HONS CBS8 Share QuestionEmailCopy link
