Managing Employee Retention Essay

Data QualityIt is important to piss sure the info you use is valid. An outlier data point whoremaster dramatic whatevery curve the fit of a puzzle, so it is particular that bad data points be moved. In the consequence of the Store24 data, we will assume that all tutors deem some run through, so rack up any data points where the omnibus experience is zero.Regression AnalysisFirst, you should run a full model for turn a profit that accommodates two land tenure and site location cerebrate shiftings. Tenure related proteans are MTenure and CTenure. order location related variables are population, proceeds of competitors, street level visibility, pedestrian access, pillowcase of neighborhood, and whether a stock certificate stays idle 24 hours. These variables are also outlined on page 4 of the case Store24 (A).First you should determine if all variables lend to our understanding of the model. Use the p-value for each coefficient to break up (a value of 0.05 is typically used to resolve whether a variable should be included). If any variables are not significant, copy the worksheet, involve the variable and run the regression again. In your report you should explain how well the model fits (e.g. describes the factors that bushel profit).It is not commonly dumb how to evaluate the reach of the independent variables. The variables have to have a p-value that is significant (otherwise we cant say at that place is a relationship), but how small the p-value is does not enounce us how important the variable is. A good way to understand the impact of the variable is to find the scat of set it can take, and then 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 Tom stags hypothesis that manager tenure does not have a analogue impact on profitabilitythat is, that there are diminishing returns to manager tenure. To prove this, copy the wo rksheet, then add the variable MTenure2. To do this, insert a pillar next to the Tenure column, and then tape the formula =D22 in carrell E2 and copy this formula to the rest of the cells. nowadays run a regression on this new set of variables and see if the MTenure2 variable is statistically significant.What to Submit You are to save up 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 support his hypothesis? You should include a graph that shows contribution to profit of employee tenure over the range of set 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 give in any new manager retention pro grams.