SCENARIO 17-10 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), the number of years of education received (Edu), the number of years at the previous job (Job Yr), a dummy variable for marital status (Married: $1 =$ married, $0 =$ otherwise), a dummy variable for head of household (Head: $1 =$ yes, $0 =$ no) and a dummy variable for management position (Manager: $1 =$ yes, $0 =$ no). We shall call this Model 1. The coefficient of partial determination ( $R _ { \mathrm { y } } ^ { 2 }$ (All raiables excopt $j$ ) ) of each of the 6 predictors are, respectively, $0.2807$, $0.0386,0.0317,0.0141,0.0958$, and $0.1201$.

$\begin{array}{lr}
\hline{\text { Regression Statistics }} \
\hline \text { Multiple R } & 0.7035 \
\text { R Square } & 0.4949 \
\text { Adjusted R } & 0.4030 \
\text { Square } & \
\text { Standard } & 18.4861 \
\text { Error } & \
\text { Observations } & 40 \
\hline
\end{array}$
$\text { ANOVA }$

$$\begin{array}{l}
\begin{array} { l r r r r r r }
\hline & \text { Coefficients } & \text { Standard Error } & { t \text { Stat } } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \
\hline \text { Intercept } & 32.6595 & 23.18302 & 1.4088 & 0.1683 & - 14.5067 & 79.8257 \
\text { Age } & 1.2915 & 0.3599 & 3.5883 & 0.0011 & 0.5592 & 2.0238 \
\text { Edu } & - 1.3537 & 1.1766 & - 1.1504 & 0.2582 & - 3.7476 & 1.0402 \
\text { Job Yr } & 0.6171 & 0.5940 & 1.0389 & 0.3064 & - 0.5914 & 1.8257 \
\text { Married } & - 5.2189 & 7.6068 & - 0.6861 & 0.4974 & - 20.6950 & 10.2571 \
\text { Head } & - 14.2978 & 7.6479 & - 1.8695 & 0.0704 & - 29.8575 & 1.2618 \
\text { Manager } & - 24.8203 & 11.6932 & - 2.1226 & 0.0414 & - 48.6102 & - 1.0303 \
\hline
\end{array}
\end{array}$$
-Referring to Scenario 17-10 and using both Model 1 and Model 2, there is
insufficient evidence to conclude that the independent variables that are not significant
individually are significant as a group in explaining the variation in the dependent variable at a
5% level of significance?

Question

SCENARIO 17-10 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), the number of years of education received (Edu), the number of years at the previous job (Job Yr), a dummy variable for marital status (Married: $1 =$ married, $0 =$ otherwise), a dummy variable for head of household (Head: $1 =$ yes, $0 =$ no) and a dummy variable for management position (Manager: $1 =$ yes, $0 =$ no). We shall call this Model 1. The coefficient of partial determination ( $R _ { \mathrm { y } } ^ { 2 }$ (All raiables excopt $j$ ) ) of each of the 6 predictors are, respectively, $0.2807$, $0.0386,0.0317,0.0141,0.0958$, and $0.1201$.

$\begin{array}{lr}
\hline{\text { Regression Statistics }} \
\hline \text { Multiple R } & 0.7035 \
\text { R Square } & 0.4949 \
\text { Adjusted R } & 0.4030 \
\text { Square } & \
\text { Standard } & 18.4861 \
\text { Error } & \
\text { Observations } & 40 \
\hline
\end{array}$
 $\text { ANOVA }$

$$\begin{array}{l}
\begin{array} { l r r r r r r } 
\hline & \text { Coefficients } & \text { Standard Error } & { t \text { Stat } } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \
\hline \text { Intercept } & 32.6595 & 23.18302 & 1.4088 & 0.1683 & - 14.5067 & 79.8257 \
\text { Age } & 1.2915 & 0.3599 & 3.5883 & 0.0011 & 0.5592 & 2.0238 \
\text { Edu } & - 1.3537 & 1.1766 & - 1.1504 & 0.2582 & - 3.7476 & 1.0402 \
\text { Job Yr } & 0.6171 & 0.5940 & 1.0389 & 0.3064 & - 0.5914 & 1.8257 \
\text { Married } & - 5.2189 & 7.6068 & - 0.6861 & 0.4974 & - 20.6950 & 10.2571 \
\text { Head } & - 14.2978 & 7.6479 & - 1.8695 & 0.0704 & - 29.8575 & 1.2618 \
\text { Manager } & - 24.8203 & 11.6932 & - 2.1226 & 0.0414 & - 48.6102 & - 1.0303 \
\hline
\end{array}
\end{array}$$
-Referring to Scenario 17-10 and using both Model 1 and Model 2, there is
insufficient evidence to conclude that the independent variables that are not significant
individually are significant as a group in explaining the variation in the dependent variable at a
5% level of significance?

Quizplus · Accepted Answer

If the independent variables are not significant individually, a joint test (like an F-test) is needed to determine if they are significant as a group. If the test shows insignificance at the 5% level, there is insufficient evidence to conclude they are significant as a group.

SCENARIO 17-10 Given Below Are Results from the Regression Analysis 1=1 =1=

SCENARIO 17-10 Given Below Are Results from the Regression Analysis $1 =$