Twenty-one executives in a large corporation were randomly selected to study the effect of several
Factors on annual salary (expressed in $000s). The factors selected were age, seniority, years of
College, number of company divisions they had been exposed to, and the level of their
Responsibility. The results of the regression analysis follow:
Test the hypothesis that the regression coeﬃcient for age is equal to 0 at the 0.05 signiﬁcance
Level. Report the critical value, the calculated test-statistic, and your decision.
A) t-critical = ±2.131, t-calculated = -0.169, fail to reject.
B) t-critical = ±2.131, t-calculated = -0.183, fail to reject.
C) t-critical = ±1.753, t-calculated = -0.169, fail to reject.
D) t-critical = ±1.753, t-calculated = -0.169, reject.

Question

Twenty-one executives in a large corporation were randomly selected to study the effect of several
Factors on annual salary (expressed in $000s). The factors selected were age, seniority, years of
College, number of company divisions they had been exposed to, and the level of their
Responsibility. The results of the regression analysis follow: 
Test the hypothesis that the regression coeﬃcient for age is equal to 0 at the 0.05 signiﬁcance
Level. Report the critical value, the calculated test-statistic, and your decision.
A) t-critical = ±2.131, t-calculated = -0.169, fail to reject. 
B) t-critical = ±2.131, t-calculated = -0.183, fail to reject. 
C) t-critical = ±1.753, t-calculated = -0.169, fail to reject. 
D) t-critical = ±1.753, t-calculated = -0.169, reject.

Quizplus · Accepted Answer

t-critical = ±2.131, t-calculated = -0.169, fail to reject.

Twenty-One Executives in a Large Corporation Were Randomly Selected to Study