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Simple Linear Regression

Student Name

Institutional Affiliation
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Introduction

Inferential statistics are critical when undertaking predictive analysis unlike descriptive

statistics, which merely indicate trends and patterns through the interpretation of measures of

central tendencies and measures of dispersion. Linear regression analysis provides statistical

meaning to data in that organizations can measure their progress or the lack thereof. Use of

simple linear regression offers information on the relationship between a predictor variable and

an outcome variable (Piekutowska et al., 2021). For instance, the case study requires testing on

the amount of change caused on the dependent variable as a consequence of change(s) in the

independent/predictor variable. Simple linear regression can enable firms to have more insights

on the extent to which various organizational variables/factors are related to performance

indicators, such as the number of sales closed and profitability. Towards this end, the current

paper is designed to establish the extent to which the sex (female or male) influences closing

sales. Furthermore, the paper provides insights on the relationship between age of the employees

and closing sales given that the debate on the relationship between older or younger and

performance related factors is quite inconclusive.

Nature of the Sample

The data set for the study has a sample size of 60 respondents with an equal number of

female and male. This signifies that the sample distribution is adequately representative of the

sex. However, it is feasible to estimate whether the sample size (n=60) is representative of the

population parameters in that the target population has not been provided. The age and closing

sales distribution are continuous variables, suggesting the need to categorize the variables to

have a better understanding of their manifestation in their respective groups. The data set is

recoded into a different variable to establish the categories as indicated in Table 1.

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Table 1
Socio-Demographic Information
Variable Category Frequency (N) Percentage (%)
Male 30 50.0
Sex
Female 30 50.0

Up to 30 years 11 18.3
Age
31-40 years 19 31.7
41 years or older 30 50.0
Up to 15 closing sales 24 40.0
Closing sales 16-20 closing sales 23 38.3
21 closing sales or more 13 21.7

Table 1 illustrated that that were 50.0% male and female employees, signifying that

the organizations was committed to workplace diversity from the gender perspective.

Evidence in the mainstream organizational management literature indicates that workplace

diversity is one of the key enablers of augmenting performance (Daud, 2021). Likewise, the

variable of age was computed into various categories, where majority (50.0) of the

respondents were 41 years or older. In contrast, 31.7% and 18.3% of the respondents were 31-

40 years and up to 30 years respectively. The age statistic indicates that many of the employees

were older and well experienced to steer the mission and the vision of the organization.

Markeeva and Barkov (2021) agrees with the results of this paper by stating that finding an

appropriate mix of old and young employees is central to realization of organizational goals.

Analysis of data on the closing sales indicates that majority (40.0%) of the respondents had up

to 15 closing sales. Conversely, 38.3% and 21.7% of the respondents had16-20 closing sales and

21 closing sales or more respectively.

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Presentation of Results and Discussions

SPSS version 24.0 was applied to undertake simple linear regression. The aim of the analysis

was to test the extent to which the predictor variable (sex) influenced the dependent variable

(closing sales). The equation of sex on closing sales states: Y= α+ β1X + ε, where α =constant

(intercept), Y= closing sales, X= is the composite index of sex, ε = Error term. Table 2 presents

results of the model summary. Table 2 illustrates the effect of sex of the respondents on the

closing sales. Correlation coefficient (R) is 0.754 for closing sales. The correlation between sex

and the number of sales closed is strong positive linear association. Furthermore, the finding

indicates that there are different variations in sex and the number of sales closed. The coefficient

of determination (R²) is 0.568, which explains that 56.8% of the variations of the number of sales

closed have been explained by the variable of sex, meaning that 43.2% of the variations are

explained by other variables that are not part of this analysis.

Table 2
Model Summary

Model R R Square Adjusted R Square Std. Error of the

Estimate
1 .754a .568 .561 2.70387
a. Predictors: (Constant), Sex
b. Dependent Variable: Number of sales closed

The Analysis of variable (ANOVA) findings in Table 3 show a probability value of 0.00 which

is less than the alpha value of 0.05. This illustrates that the regression model is statistically

significant in explaining the effect of sex (predictor variable) on the number of sales closed.

Thus, the sex of the employees has a statistically significant effect on the number of sales closed.

Table 3
Analysis of Variance
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Model Sum of Squares df Mean Square F Sig.

Regression 558.150 1 558.150 76.345 .000b
1 Residual 424.033 58 7.311
Total 982.183 59
a. Dependent Variable: Number of sales closed
b. Predictors: (Constant), Sex

The simple linear regression results indicate that holding sex of the employee’s constant,

the number of sales closed will be 19.667. Furthermore, a unit change in sex of the employees

will lead to 6.100 units decrease in the number of sales closed. The p value of 0.00 indicates that

the linear relationship between sex of the employees and the number of sales closed in

statistically significant (p<.05).

The simple linear regression model Y= α+ β1X + ε,

Where:

Y= the number of sales closed and X= sex of the employees

becomes:

Number of sales closed = 19.667-6.100 + 0

Table 4
Simple Linear Regression Coefficients

Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta
(Constant) 19.667 .494 39.839 .000
1
Sex -6.100 .698 -.754 -8.738 .000
a. Dependent Variable: Number of sales closed

This finding on the effect of sex of the employees on number of sales closed is relatable to the

existing body of literature, where some studies agree or disagree on the effect of sex on

performance. For example, the findings of this study disagree with a study done by Ciancetta
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and Roch (2021) who stated that the sex of the employees is significantly associated with the

performance of organizations. In contrast, Brahma et al. (2021) states that firm performance is

positively and significantly associated with gender diversity.

Recommendations

The relationship between the age of the employees and the number of sales closed is

not statistically significant judging from Table 5. The probability value of 0.525 is greater

than the standard alpha value of 0.05. This means that age of the employees does not

significantly influence the performance of the employees as measured by the number of sales

closed.

Table 5
Simple Linear Regression Results on the effect of age on the Number of Sales Closed

Model Unstandardized Standardized t Sig.

Coefficients Coefficients
B Std. Error Beta
(Constant) 18.170 2.485 7.311 .000
1
Age in years -.038 .059 -.084 -.640 .525
a. Dependent Variable: Number of sales closed
b. Predictors: (Constant), Age in years

From the results in Table 5, it is evident that organizations should not necessarily place

premium on the age of the respondents. However, Table 4 indicates that sex (male or female) of

the employees is significantly associated with the number of sales reached. Thus, organizations

should have the right mix of younger and older sales persons since this will enhance transfer of

knowledge from the experienced workforce to the less experienced younger employees.

Synthesis of the results indicates that workplace diversity is critical in enhancing the number of
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sales closed. This could be a result of gender differences in the performance, thus the mix

entrenching a culture of gender parity improves organizational performance.

Conclusion
The analysis of the data offers insights on how organizations can leverage gender

diversity or parity in order to achieve the set goals and objectives. Using simple linear

regression, the paper establishes that the sex of the employees is statistically associated with the

number of sales closed. Applying the same simple predictive analysis, the paper finds that the

age of the employees/sale persons is not significantly associated with the number of sales

reached. This has implications in terms of the decisions made by organizations. For instance,

organizations should have an appropriate mix of male and female employees, while mentorship

of the employees is critical since age, alone, cannot influence the number of sales closed.
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References
Brahma, S., Nwafor, C., & Boateng, A. (2021). Board gender diversity and firm performance:

The UK evidence. International Journal of Finance & Economics, 26(4), 5704-5719.

Ciancetta, L. M., & Roch, S. G. (2021). Backlash in performance feedback: Deepening the

understanding of the role of gender in performance appraisal. Human Resource

Management, 60(4), 641-657.

Daud, Y. M. (2021). The place and role of spiritual leadership in organizational performance.

Toward a model for public service delivery. International Journal of Economics,

Business and Management Research, 5(6); 223-237.

Markeeva, A., & Barkov, S. (2021). Young and Aged Employees in the Russian Labour

Market: Confrontation or Complementarity?. Postmodern Openings, 12(1), 152-168.

Piekutowska, M., Niedbała, G., Piskier, T., Lenartowicz, T., Pilarski, K., Wojciechowski,

T., ... & Czechowska-Kosacka, A. (2021). The application of multiple linear regression

and artificial neural network models for yield prediction of very early potato cultivars

before harvest. Agronomy, 11(5), 885.

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