Section SixCASE 6-1 continued
Line’s efficiency in the utilization of programmers by comparing
its utilization level with other software developers.
In order to obtain data for its recommendations to the
bank, the consulting company has conducted a survey of other
software developers. The survey was designed to obtain
information on several business practices, including questions
about staffing levels and human resource utilization. (The
consulting firm has already determined that Core-Line’s salaries
are average for the industry.) Unfortunately, although the
consulting firm has done some work with software developers
and has a good reputation, many firms refused to supply data.
Consequently, only 40 percent of the questionnaires were
returned, for a total of 65 responses. Nonetheless, the
consulting firm has decided to proceed with an analysis of the
data.
The analysis of the data will employ a comparative
approach in which each responding company’s staffing level of
programmers (dependent variable) will be compared with
potential explanatory variables (independent variables). In
order to control the influence of each independent variable, the
consulting firm has decided to use the statistical technique of
multiple regression analysis. Each of the 65 responses will