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?

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?

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 the coefficient of age in the regression equation is not equal to zero. This is represented as "β1 ≠ 0" in the equation "Unemploy = β0 + β1Age + β2Manager + ε". Option B represents this alternative hypothesis. 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 is:

H1: β1 ≠ 0

where β1 is the coefficient of Age in the multiple regression equation. This hypothesis can be tested using a t-test with a 95% confidence level. Choice A is incorrect because it tests the hypothesis that the coefficient of Age is equal to zero, which is the null hypothesis. Choice C is incorrect because it tests the hypothesis that the coefficient of Manager is equal to zero, which is not relevant to the question. Choice D is incorrect because it tests the hypothesis that the coefficients of Age and Manager are equal to zero, which is also not relevant to the question.

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