SCENARIO 18-3 A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 variables: age (X 1 = Age),experience in the field (X 2 = Exper),number of degrees (X 3 = Degrees),and number of previous jobs in the field (X 4 = Prevjobs).He took a sample of 20 employees and obtained the following Microsoft Excel output: -Referring to Scenario 18-3,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 $\beta$ ₃ $\neq$ 0 .

Question

Quizplus · Accepted Answer

The p-value for X₃ is 0.001, which is less than the level of significance of 0.01. Therefore, the analyst would reject the null hypothesis and conclude that X₃ is a significant predictor of salary at the 0.01 level.

SCENARIO 18-3 a Financial Analyst Wanted to Examine the Relationship β\betaβ

SCENARIO 18-3
a Financial Analyst Wanted to Examine the Relationship $\beta$