TABLE 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000) and 4 variables: age (X₁ = Age), experience in the field (X₂ = Exper), number of degrees (X₃ = Degrees), and number of previous jobs in the field (X₄ = Prevjobs). He took a sample of 20 employees and obtained the following Microsoft Excel output:
-Referring to Table 14-8, the F test for the significance of the entire regression performed at a level of significance of 0.01 leads to a rejection of the null hypothesis.

Question

TABLE 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000) and 4 variables: age (X₁ = Age), experience in the field (X₂ = Exper), number of degrees (X₃ = Degrees), and number of previous jobs in the field (X₄ = Prevjobs). He took a sample of 20 employees and obtained the following Microsoft Excel output: 
-Referring to Table 14-8, the F test for the significance of the entire regression performed at a level of significance of 0.01 leads to a rejection of the null hypothesis.

Quizplus · Accepted Answer

The p-value for the F-test is less than 0.01, indicating a significant result at the 0.01 level of significance. Therefore, we reject the null hypothesis and conclude that at least one of the independent variables is significantly related to the dependent variable (salary).

TABLE 14-8 A Financial Analyst Wanted to Examine the Relationship Between Salary