REGRESSION MODEL AND CORRELATION

QUESTION

Question 1  (55 marks)

You are employed in the Sydney office of a large international recruitment agency. A delegation from the head office is arriving soon and they are interested in employment in Australia. Your boss is to make a presentation to this delegation and you are to assist with this. You have been asked to prepare graphs to illustrate the following:

 

  • The percentage of persons, in total, employed in each state and territory;

 

  • The breakdown of the Australian labour force into fulltime/part-time and male/female;

 

  • Full-time employees showing gender and state or territory;

 

  • Part-time employees showing gender and state or territory;

 

  • A comparison of male and female employment by state or territory.

 

It is up to you to decide the most appropriate type of graph to use for each of these. Each of these graphs needs to be prepared in Excel and will need a figure number, a meaningful title, all the axes will need to be labeled and the units included. A source should also be included.

In addition to the graphs you need to write a report highlighting the important details shown in the graphs. Since the delegation is unfamiliar with the Australian system you will also need to explain how the Australian employment and unemployment figures are calculated. You will need to give the definitions used, the sampling methods employed by the ABS and an example calculation showing how the unemployment figures are arrived at.

The graphs are not to be too small and the final report will be given to each member of the delegation and so must be well presented. To help you, your boss has given you Table 1 shown on the next page.

 

The data given in Table 1 is for September 2011. You may assume that this is the most up to date month for the purpose of the report to the delegation. However:

 

  • What is the most up-to-date month available on the ABS website?

 

  • For this most up-to-date month what is the total number of persons in the labour force in Australia?

 

  • What is the percentage increase (or decrease) for this figure and the September 2011 figure?

SOLUTION

1. The explanations are given as follows as according to the asked scenarios. Please note the corresponding graphs are shown in the spread sheet attached with the assignment.

  • The pie chart as shown in the tab Answer1a of the excel sheet, shows the population breakup with the 8 states of Australia. It is quite easy to comment from the graph that NSW has the highest population% employed with as much as 32% of the total share. The other states like Vic and Old are next in their working population sizes; however the states like TAS, Act and NT have the smallest shares, ranging from 2 to 1% of the whole.
  • The pie charts in the Answer1b tab of the spread sheet shows the full time employed have the share of 71% among the total population employed and the rest is shared by the part time employed people. The males and the females’ breakup of the working population show the females lagging behind men by 8%, with their share being 46%.
  • The graph is a column graph as can be seen in the Answer1c tab of the spreadsheet. This graph clearly shows the full time employment in Australian states with the gender breakup. The highest employment being of NSW and the lowest of NT.
  • This also a column graph as shown in the Answer1d tab of the excel sheet. This shows us the part-time employment details with the gender breakup. This is worth noting from the graph that the part-time working population of the females is much larger than those of the males.
  • This shows the employment scenario of Australia among its 8 different states mentioned in the sheet Answer1e.The employment details are shown with the help of double stacked column graphs.
  • What is the most up-to-date month available on the ABS website?  March 2012

 

  • For this most up-to-date month what is the total number of persons in the labor force in Australia? 11 465.7+ 626.8= 12092.5

 

  • What is the percentage increase (or decrease) for this figure and the September 2011 figure? change in workforce=-(12161.0-12092.5)=-68.5

 

% decrease=0.0056*100=0.56%

 

2. The two histograms are shown in the spread sheet attached with solution. The first histogram shows the prices of the single dwellings in Forrest and Barton, in accordance with their sizes. The general trend of the histogram shows a positive change in the prices as the sizes of the plots increase. But it can be also seen that some of the plots of smaller sizes have higher prices as compared to the others, which may be the result of the facilities and the location of the plots. A similar histogram for the multiple dwellings has been done. The range of input data for the histogram is larger hence has been enlarged to make the view easier. The plot designed by the colleague shows a different style of presenting the same data.

3.

a) The scatter plot of the table has been shown in the excel sheet attached.

b) The Scatter plot shows a strong relationship between the two variables. The graph is showing linear regression

c) The regression output is shown in the Scatter plot tab of the excel sheet along with the XY scatter diagram.

d) Y = 2.21x-25.52 the coefficient of determination (COD) is over 93% hence a very strong correlation between the two variables.

e) The value of Y corresponding to x=30degrees is 40.78%.

f) When X=40 degrees Y= 62.88%, which is reliable as the COD is very high for the variables given.

L028

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