TABLE 17-3
A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 variables: age (X₁ = Age),experience in the field (X₂ = Exper),number of degrees (X₃ = Degrees),and number of previous jobs in the field (X₄ = Prevjobs).He took a sample of 20 employees and obtained the following Microsoft Excel output:
SUMMARY OUTPUT
Regression Statistics ANOVA
-True or False: Referring to Table 17-3,the analyst wants to use a t test to test for the significance of the coefficient of X₃.At a level of significance of 0.01,the department head would decide that β₃ ≠ 0.

Question

TABLE 17-3
A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 variables: age (X₁ = Age),experience in the field (X₂ = Exper),number of degrees (X₃ = Degrees),and number of previous jobs in the field (X₄ = Prevjobs).He took a sample of 20 employees and obtained the following Microsoft Excel output:
SUMMARY OUTPUT
Regression Statistics

TABLE 17-3 A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 variables: age (X<sub>1</sub> = Age),experience in the field (X<sub>2</sub> = Exper),number of degrees (X<sub>3</sub> = Degrees),and number of previous jobs in the field (X<sub>4</sub> = Prevjobs).He took a sample of 20 employees and obtained the following Microsoft Excel output: SUMMARY OUTPUT Regression Statistics ANOVA -True or False: Referring to Table 17-3,the analyst wants to use a t test to test for the significance of the coefficient of X<sub>3</sub>.At a level of significance of 0.01,the department head would decide that β<sub>3</sub> ≠ 0.

ANOVA

-True or False: Referring to Table 17-3,the analyst wants to use a t test to test for the significance of the coefficient of X₃.At a level of significance of 0.01,the department head would decide that β₃ ≠ 0.

Quizplus · Accepted Answer

In Table 17-3, the coefficient of X₃ (number of degrees) has a t-value of 2.31 and a corresponding p-value of 0.032, which is less than the level of significance of 0.01. Therefore, we reject the null hypothesis that the coefficient is equal to 0 and conclude that there is a significant relationship between number of degrees and salary.

TABLE 17-3 A Financial Analyst Wanted to Examine the Relationship Between Salary