Problem
Suppose you are a member of a team of Human Resource Analysts that have been tasked with exploring the value of a new pay-for performance compensation practice. Some members on the team are tasked with collecting the data, some with analysis, and others with interpreting the analysis. The Analysts have used regression to analyze the relationship between dollar value changes in the pay-for performance incentive offered to employees and changes in the productivity of employees measured in dollars. Using the data for the pay-for performance incentive (X) and corresponding productivity outcomes (Y) for all employees over several months, a regression was estimated with the following results: Y = -150 + 75X + e, where e is the error in the regression. The p-values for each of the coefficients in this regression are p < 0.01. In terms of human resource program implementation and given the relationships found in the regression, is this pay-for-performance program worth continuing, and why?