A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results: Based on the hypothesis tests for the individual regression coefficients,
A) all the regression coefficients are not equal to zero.
B) "job" is the only significant variable in the model.
C) only months of service and gender are significantly related to monthly salary.
D) "service" is the only significant variable in the model.

Question

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:  Based on the hypothesis tests for the individual regression coefficients,
A) all the regression coefficients are not equal to zero. 
B) "job" is the only significant variable in the model. 
C) only months of service and gender are significantly related to monthly salary. 
D) "service" is the only significant variable in the model.

Quizplus · Accepted Answer

The ANOVA summary indicates that at least one of the regression coefficients is not zero, which supports choice A. However, the hypothesis tests for individual regression coefficients indicate that only the coefficients for months of service and gender are statistically significant at the 5% level. The coefficient for job type is not significant. Therefore, choice B and D are incorrect. The correct choice is C, which states that only months of service and gender are significantly related to monthly salary.

A Manager at a Local Bank Analyzed the Relationship Between