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

question 34

Short Answer

TABLE 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000)and 2 variables: age
(X₁ = Age)and experience in the field (X₂ = Exper).He took a sample of 20 employees and obtained the following Microsoft Excel output: Also,the sum of squares due to the regression for the model that includes only Age is 5022.0654 while the sum of squares due to the regression for the model that includes only Exper is 125.9848.
-Referring to Table 14-8,the analyst wants to use a t test to test for the significance of the coefficient of X₂.For a level of significance of 0.01,the critical values of the test are ________.

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Definitions:

Cash Cycle

The duration of time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Receivables Period

The average number of days required for a company to receive payments owed by its customers for goods or services rendered.

Inventory Period

The average length of time items are held in inventory before being sold.

Payables Period

The average time it takes for a business to pay its invoices and bills, reflecting the company's efficiency in managing payables.