TABLE 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000)and 2 variables: age
(X 1 = Age)and experience in the field (X 2 = Exper).He took a sample of 20 employees and obtained the following Microsoft Excel output: Also,the sum of squares due to the regression for the model that includes only Age is 5022.0654 while the sum of squares due to the regression for the model that includes only Exper is 125.9848.
-True or False: Referring to Table 14-8,the F test for the significance of the entire regression performed at a level of significance of 0.01 leads to a rejection of the null hypothesis.

Question

TABLE 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000)and 2 variables: age
(X 1 = Age)and experience in the field (X 2 = Exper).He took a sample of 20 employees and obtained the following Microsoft Excel output:  Also,the sum of squares due to the regression for the model that includes only Age is 5022.0654 while the sum of squares due to the regression for the model that includes only Exper is 125.9848.
-True or False: Referring to Table 14-8,the F test for the significance of the entire regression performed at a level of significance of 0.01 leads to a rejection of the null hypothesis.

Quizplus · Accepted Answer

The p-value for the F test is less than 0.01 (0.0002), indicating that the regression model is significant at the 0.01 level of significance. Therefore, the null hypothesis is rejected and the alternative hypothesis (that the regression model is significant) is supported.

TABLE 14-8 A Financial Analyst Wanted to Examine the Relationship Between Salary