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Do chief executive of?cers (CEOs) and their top managers always agree on the goals of the company? Goal importance congruence between CEOs and vice presidents (VPs) was studied in the Academy of Management Journal (February 2008).  The researchers used regression to model a VP's attitude toward the goal of improving ef?ciency (y) as a function of the two quantitative independent variables, level of CEO leadership (x1) and level of congruence between the CEO and the VP (x2). A complete second-order model in x1 and x2 was ?t to data collected for n = 517 top management team members at U.S. credit unions.

  • Write the complete second-order model for E(y).
  • The coef?cient of determination for the model, part a, was reported as R2 = .14. Interpret this value.
  • The estimate of the β-value for the (x2)2 term in the model was found to be negative. Interpret this result, practically.
  • A t-test on the β-value for the interaction term in the model, x1x2, resulted in a p-value of .02. Practically interpret this result, using α = .05.

 

 

Microeconomics, Economics

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