Question

You build several models predicting job performance (sales dollars in thousands) as a function of years of industry experience. The parameter estimate is 0.50 (p < .0001) for a simple linear regression and 0.50 (p<.0001) when including three other predictors (education level, SAT score, and age) in a multiple linear regression. What does the .5 mean in the simple linear regression

Answer 1

1 unit increase in industry experience increases job sales performance by 0.5 units (other factors remaining constant).

Explanation:

The parameter estimate in a multiple linear regression model - shows the extent of linear impact of independent variable on dependent variable, other factors remaining constant.

So, parameter estimate of independent variable 'industry experience' = 0.50 states that one unit increase in this variable (industry experience) increases dependent variable 'job sales performance' by 0.5 years, other factors remaining (education level, SAT score, and age) remaining constant.