Step 1: Convert “performance rating” and “average sales result” in 1 to 10 rating and name them

“performane_scale” and sales_scale” respectively.

Step 2: Run factor analysis on variables involvement scale, excitement scale, fun score, satisfied,
happy, pleased, turnover rating, performance scale & sales scale.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .636

Approx. Chi-Square 144.854

Bartlett's Test of Sphericity df 36

Sig. .000

KMO is 0.636 which is greater than 0.5 and sig. is 0.000 which is less than 0.05. So we can say that
data is qualified for further analysis.

Rotated Component Matrixa

Component

1 2 3 4

Involvement Score (SD) -.121 -.020 .025 .891

Excitement Score .111 -.086 .745 -.218
Fun Score .004 .054 .744 .373
Satisfied .941 .124 .120 -.090
Happy .893 -.060 .169 -.088
Pleased .871 .095 .042 .073
Turnover Rating -.820 -.059 .126 .100
Performance_sacle -.045 .871 .072 -.230
Sales_scale .230 .767 -.148 .285

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.a
a. Rotation converged in 5 iterations.

Rotated component matrix shows that:

Component 1 consist of satisfied (0.941), happy (0.893), pleased (0.871) as their value is greater than
0.7.

Component 2 consist of performance scale (0.871) and sales scale (0.767) their value is greater than
0.7.

Component 3 consist of excitement score (0.745) and Fun score (0.744) their value is greater than
0.7.

As there is no values greater than 0.7 in component 4, we will exclude it.

For scree plot we can conclude that component 1 and component 2 are very important as scree is
formed from component 2. So for further analysis we will consider only variables which are in
component 1 and component 2.

Step 3: Now we will do reliability test of satisfied, happy, pleased, performance scale and sales scale.
(As these variables are only considered in component 1 and component 2).

Case Processing Summary

N %

Valid 40 100.0

Cases Excludeda 0 .0

Total 40 100.0

a. Listwise deletion based on all variables in the

procedure.

This shows that data is 100% valid.

 Reliability Statistics

Cronbach's Cronbach's N of Items

Alpha Alpha Based on
Standardized
Items

.760 .726 5

We can see that Cronbach's alpha is 0.760, which indicates a high level of internal consistency.

Step 4: We will take average of variables in component 1 (satisfied, happy and pleased) and name it
Emotions. And take average of variables in component 2 (performance scale and sales scale) and
name it Avg PS.

Step 5: Correlation analysis between Emotions, Avg PS and Turnover rating.

Descriptive Statistics

Mean Std. Deviation N

Turnover Rating 4.64 1.512 40

Emotions 5.0500 1.78239 40
Avg PS 8.1000 .63246 40

Mean of Turnover Rating is 4.64 which means most of the people have rated less than 5 and
standard deviation is 1.512 which means most of the rating is between 3.128 to 6.152.

Mean of Emotions is 5.05 which means most of the people have rated greater than 5 and standard
deviation is 1.78239 which means most of the rating is between 3.26761 to 6.83239.

Mean of Avg PS is 8.1 which means most of the people have rated greater than 5 and standard
deviation is 0.63246 which means most of the rating is between 7.46754 to 8.73246.

Correlations

Turnover Rating Emotions Avg PS

Pearson Correlation 1 -.662** -.106

Turnover Rating Sig. (2-tailed) .000 .516

N 40 40 40
Pearson Correlation -.662** 1 .200
Emotions Sig. (2-tailed) .000 .216
N 40 40 40
Pearson Correlation -.106 .200 1

Avg PS Sig. (2-tailed) .516 .216

N 40 40 40
**. Correlation is significant at the 0.01 level (2-tailed).
Here we can see that there is negative relation between Turnover rating and Emotions and
significance is 0.000. S we will consider this variable for further analysis.

Significance between turnover and Avg Ps is 0.516 which is greater than 0.01 so we will not consider
this variable for further analysis.

Step 6: Now we will run linear regression analysis where dependent variable will be Turnover rating
and independent variable will be Emotions.

Model Summaryb

Mode R R Adjusted R Std. Error of Change Statistics

l Square Square the Estimate R Square F df1 df2 Sig. F
Change Change Change

1 .662a .438 .423 1.149 .438 29.586 1 38 .000

a. Predictors: (Constant), Emotions

b. Dependent Variable: Turnover Rating

Here we can see that value of r is 0.662 which is greater than 0.5 which says that there is strong
correlation and sig. F is 0.000 which means variables have statistically significant linear relationship
(p < .001).

Coefficientsa

Model Unstandardized Standardized t Sig. 95.0% Confidence Interval for

Coefficients Coefficients B

B Std. Error Beta Lower Bound Upper Bound

(Constant) 7.473 .552 13.541 .000 6.355 8.590

1
Emotions -.561 .103 -.662 -5.439 .000 -.770 -.352

a. Dependent Variable: Turnover Rating

Here we can see that value of B of Constant and Emotions is 0.000 (<0.01), therefore these values
are valid.

Estimated model coefficient

Turnover rating = 7.473 – (0.561 x Emotions)

This means if the value of emotion increases, turnover rating decreases.

Therefore the management should focus on increasing emotions (satisfied, happy and pleased) to
decrease the turnover rating and to retain their employees.