Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.What is the value of the test statistic for testing H₀: β₂ = β₃ = 0 against H_A: β₂ ≠ 0 or β₃ ≠ 0 in the model Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε?

Question

Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results.

Refer to Exhibit 16.6.What is the value of the test statistic for testing H₀: β₂ = β₃ = 0 against H_A: β₂ ≠ 0 or β₃ ≠ 0 in the model Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε?

Quizplus · Accepted Answer

The Answer of Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.What is the value of the test statistic for testing H₀: β₂ = β₃ = 0 against H_A: β₂ ≠ 0 or β₃ ≠ 0 in the model Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε?