SCENARIO 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. -Referring to Scenario 14-8,the analyst wants to use a t test to test for the significance of the coefficient of X₂.At a level of significance of 0.01,the department head would decide that $\beta$₂ $\neq$ 0 .

Question

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The scenario described involves testing the significance of a coefficient, which typically involves using a t-test. However, the decision to reject or not reject the null hypothesis at a significance level of 0.01 depends on the p-value obtained from the t-test, not directly on the coefficient itself. The statement as presented is unclear and mixes symbols without a clear explanation, making it impossible to determine the accuracy of the procedure without additional context.

SCENARIO 14-8 a Financial Analyst Wanted to Examine the Relationship β\betaβ

SCENARIO 14-8
a Financial Analyst Wanted to Examine the Relationship $\beta$