Linear Regression and Correlation
Ex. You are the personnel director of a major corporation. We want to be able to predict
with a certain level of certainty whether a job applicant will be a good employee. We
purchase a pre-employment screening test. You administer this test to several of your
new hires. You measure two quantities for each applicant; 1. his/her test score and 2. job
performance score (reflects how well they actually perform their job). Based on this data,
you want to determine if there is a formula you might develop that if you know an
applicant’s test score, you could predict (with a certain level of confidence) their future
job performance score.
Test Score Job Performance Score
38 118
27 102
40 126
21 93
31 110
Five job applicants take the pre-employment screening test (their scores are listed below).
Using the above data as a guide, predict what their job performance score will be.
Predicted
Test Score Job Performance Score
23
34
29
52
7
