TABLE 14-17 Given Below Are Results from the Regression Analysis Where the Where

question 251

Multiple Choice

TABLE 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 Table 14-17,which of the following is the correct null hypothesis to determine whether there is a significant relationship between the number of weeks a worker is unemployed due to a layoff and the entire set of explanatory variables?

• A)H₀ : β₀ = β₁ = β₂ = 0
• B)H₀ : β₁ = β₂ = 0
• C)H₀ : β₀ = β₁ = β₂
• D)H₀ : β₁ = β₂

---

Definitions:

Cash Ratio

A liquidity metric that measures a company’s ability to cover its short-term liabilities with its cash and cash equivalents.

Current Ratio

A measure of a business's capability to settle short-term debts, calculated as the ratio of current assets to current liabilities.

Cash Equivalents

Liquid assets that can be quickly turned into a specific amount of cash and have initial maturity times of no more than three months.

Cash Ratio

A financial ratio indicating how well a company can cover its short-term obligations using its liquid assets.