TABLE 14-17
Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy)and the independent variables are the age of the worker (Age)and a dummy variable for management position (Manager: 1 = yes,0 = no).
The results of the regression analysis are given below:
-True or False: Referring to Table 14-17,the null hypothesis should be rejected at a 10% level of significance when testing whether age has any effect on the number of weeks a worker is unemployed due to a layoff while holding constant the effect of the other independent variable.

Question

TABLE 14-17
Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy)and the independent variables are the age of the worker (Age)and a dummy variable for management position (Manager: 1 = yes,0 = no).
The results of the regression analysis are given below: 
-True or False: Referring to Table 14-17,the null hypothesis should be rejected at a 10% level of significance when testing whether age has any effect on the number of weeks a worker is unemployed due to a layoff while holding constant the effect of the other independent variable.

Quizplus · Accepted Answer

Looking at the "t-Value" for the Age variable in the regression output, we see that it is equal to -2.04. To test whether this coefficient is statistically significant, we refer to the "Pr > |t|" column. This value tells us the probability of observing a t-value as extreme or more extreme than what we observed, assuming the null hypothesis is true (i.e., that the true coefficient is equal to 0). In this case, we see that the "Pr > |t|" value for Age is 0.0424, which is less than 0.10. This means we can reject the null hypothesis at the 10% level of significance and conclude that age does have a statistically significant effect on the number of weeks a worker is unemployed due to a layoff, holding constant the effect of the other independent variable (i.e., Manager).

TABLE 14-17 Given Below Are Results from the Regression Analysis Where the Where