Managing Employee Retention Essay

Data QualityIt is eventful to make sure the data you use is valid. An outlier data point preserve dramatic altogethery reduce the fit of a determine, so it is critical that big(a) data points be moved. In the case of the Store24 data, we will assume that all omnibuss turn out some experience, so remove any(prenominal) data points where the passenger vehicle experience is zero.Regression AnalysisFirst, you should run a full sticker for profit that includes both term of office and site location related inconstants. term of office related variables are MTenure and CTenure. Site location related variables are population, sum up of competitors, street level visibility, pedestrian access, type of neighborhood, and whether a store remain open 24 hours. These variables are also defined on paginate 4 of the case Store24 (A).First you should determine if all variables contribute to our apprehension of the model. Use the p-value for each coefficient to mold (a value of 0.05 is t ypically used to decide whether a variable should be included). If any variables are non signifi dealt, likeness the worksheet, remove the variable and run the regression again. In your report you should pardon how well the model fits (e.g. describes the factors that push profit).It is not commonly understood how to pass judgment the impact of the independent variables. The variables have to have a p-value that is signifi senst (otherwise we cant say there is a relationship), but how small the p-value is does not tell us how important the variable is. A good bearing to understand the impact of the variable is to find the range of values it can take, and then(prenominal) multiply that range by the value of the coefficient. That tells you the maximum impact that the variable can have on the problem.Next, you must address turkey cock Harts hypothesis that manager tenure does not have a linear impact on profitabilitythat is, that there are diminishing returns to manager tenure. To test this, copy the worksheet, then add the variable MTenure2. To do this, insert a column next to the Tenure column, and then enter the blueprint =D22 in cell E2 and copy this formula to the rest of the cells. Now run a regression on this spic-and-span set of variables and see if the MTenure2 variable is statistically significant.What to Submit You are to salve a memo from Sarah Jenkins to Paul Doucette summarizing your results. You should explain your regression results* How well the model predicts store performance (r2, p-value of variables and their impact) * How your MTenure2 assesses Tom Harts hypothesis. Does it pledge his hypothesis? You should include a graph that shows contribution to profit of employee tenure over the range of values in the data set. The x-axis should be manager tenure, and the y-axis should be the predicted contribution to store profit.Finally, your memo should give Paul Doucette a concrete recommendation as to how much Store24 should invest in an y new manager retention programs.