SCENARIO 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:

-Referring to Scenario 14-17,which of the following is the correct alternative hypothesis to test 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?
A)H 1 : $\beta$ 1 = 0
B)H 1 : $\beta$ 1 $\neq$ 0
C)H 1 : $\beta$ 2 = 0
D)H 1 : $\beta$ 2 $\neq$ 0

Question

SCENARIO 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:

-Referring to Scenario 14-17,which of the following is the correct alternative hypothesis to test 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?
A)H 1 : $\beta$ 1 = 0 
B)H 1 : $\beta$ 1 $\neq$ 0 
C)H 1 : $\beta$ 2 = 0 
D)H 1 : $\beta$ 2 $\neq$ 0

Quizplus · Accepted Answer

The alternative hypothesis to test 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 is given by: H₁: β1 ≠ 0 This means that age has a significant effect on the number of weeks a worker is unemployed due to a layoff, while holding constant the effect of management position. Option A is incorrect because it assumes that the alternative hypothesis states that the slope coefficient of age is zero, which means age has no effect on the number of weeks unemployed. Option C and D are incorrect because they assume that the alternative hypothesis tests whether the coefficients of the dummy variable and the interaction term are equal to zero, which is unrelated to the hypothesis stated in the question.

SCENARIO 14-17 Given Below Are Results from the Regression Analysis β\betaβ

SCENARIO 14-17
Given Below Are Results from the Regression Analysis $\beta$