Twenty-one executives in a large corporation were randomly selected for a study in which several factors were examined to determine their effect on annual salary (expressed in $000's). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to and the level of their responsibility. A regression analysis was performed using a popular spreadsheet program with the following regression output: Which of the following has the most influence on salary--20years of seniority, 5 years of college or attaining 55 years of age?
A) 20 years of seniority
B) 5 years of college
C) attaining 55 years of age
D) seniority, education and age all have equal influence on salary

Question

Twenty-one executives in a large corporation were randomly selected for a study in which several factors were examined to determine their effect on annual salary (expressed in $000's). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to and the level of their responsibility. A regression analysis was performed using a popular spreadsheet program with the following regression output:  Which of the following has the most influence on salary--20years of seniority, 5 years of college or attaining 55 years of age?
A) 20 years of seniority 
B) 5 years of college 
C) attaining 55 years of age 
D) seniority, education and age all have equal influence on salary

Quizplus · Accepted Answer

According to the regression output, the coefficient for seniority (0.578) is higher than the coefficients for both years of college (0.182) and age (0.296). This indicates that seniority has a stronger influence on salary than either years of college or age. Therefore, option A) 20 years of seniority is the best choice.

Twenty-One Executives in a Large Corporation Were Randomly Selected for a Study