Read 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 retum 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 peer-reviewed 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 number of peer-reviewed articles read weekly by CEO Return on Shareholders' equity (ROE, in %) 1 4 12,50 2 1 10,42 3 15 18,00 4 6 22.75 D 18 27.16 0 13 17.85 TE 9.21 31,08 1 5,62 10 3 12 22 11 5 14.08 12 3 9.50 13 4 12.26 14 4 16.50 15 5 18 64 120 6 19 55 With 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: REQUIRED 1 State the aim of the study. 2 Identify the Independent (IV) and dependent (DV) variables implicit in the study. 3 Formulate the null and alternative hypotheses for the study. 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 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 State the regression equation of the 'Average number of articles - ROE' model 18 19 2.2 Tests of Normality ROE Kolmogorov-Smimova Shapiro-Wilk Statistic cf Sig. Statistic df Sig. ROE 098 120 200 973 120 167 a. Lilliefors Significance Correction Table 2.3: Correlation of Average Number of Articles Read-ROE 23 Correlations of average number of article read ROE ROE Average number of articles read 1.000 Pearson articles read Correlation 799*** Average number of Sig. (2-tailed) 000 N ROE Pearson Correlation Sig. (2-tailed) N * Correlation is significant at the 0.05 level (2-tailed). Table 2.4: Regression Model Summary of Average Number of Articles - ROE Model Summary b Model R Std. Error of the Estimate R Square 638 Adjusted R Square 624 1 799a 6.992 a. Predictors: (Constant), Average number of articles read b. Dependent Variable: ROE Table 2.5: Results of ANOVA for the Average Number of Articles Read - ROE model ANOVAa Model Sum of Squares Mean Square Sig 000b 1089.416 153 919 Regression Residual 1089.416 835.185 7.0778 118 119 Total 1924 601 a. Dependent Variable: ROE b. Predictors: (Constant), Average number of articles read Table 2.6: Regression Coefficients for the Average Number of Articles Read - ROE Model Coefficientsa Unstandardized Coefficients Standardized Coefficients Model B Std. Error Sig (Constant) 1.897 Average number of articles read 2.498 0.453 799 a Dependent Variable: ROE 120 79 100 120 799** 6.528 041 000 120 1.000 120