TABLE 14-8
a Financial Analyst Wanted to Examine the Relationship

question 106

Short Answer

TABLE 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000) and 4 variables: age (X₁ = Age), experience in the field (X₂ = Exper), number of degrees (X₃ = Degrees), and number of previous jobs in the field (X₄ = Prevjobs). He took a sample of 20 employees and obtained the following Microsoft Excel output:

$\text {SUMMARY OUTPUT}$
$\begin{array}{ll}\hline \text { Regression Statistics } \\\hline \text { Multiple R }& 0.992 \\ \text { R Square} & 0.984 \\ \text { Adjusted R Square} & 0.979 \\ \text { Standard Error }& 2.26743 \\ \text { Observations} & 20 \\\hline\end{array}$

ANOVA
$\begin{array}{lccclc}\hline & \text {d f }& \text { SS }& \text { M S } & \text { F } & \text {Significance F } \\\hline \text { Regression} & 4 & 4609.83164& 1152.45791 & 224.160& 0.0001 \\ \text {Residual} &15& 77.11836 & 5.14122& & \\ \text {Total} & 19 & 4686.95000 & & & \\\hline\end{array}$

$\begin{array}{lrrrr}\hline & \text {Coefficients} &\text { Standard Error} & \text { t Stat } & \text { p -value} \\\hline \text { Intercept }& -9.611198 & 2.77988638 & -3.457 & 0.0035 \\\text { Age }& 1.327695 & 0.11491930 & 11.553 & 0.0001 \\\text { Exper }& -0.106705 & 0.14265559 & -0.748 & 0.4660 \\\text { Degrees} & 7.311332 & 0.80324187 & 9.102 & 0.0001 \\\text { Prevjobs }& -0.504168 & 0.44771573 & -1.126 & 0.2778 \\\hline\end{array}$

-Referring to Table 14-8, the estimate of the unit change in the mean of Y per unit change in
X₄, taking into account the effects of the other 3 variables, is ______.

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Definitions:

Basaltic Lava

A type of lava that is low in silica and has a fluid consistency, erupting from volcanoes at high temperatures.

Shield Volcano

A type of volcano that has broad, gently curved slopes constructed mostly of relatively fluid basaltic lava flows.

Scoria Cone

A relatively small type of volcano that is cone shaped and mostly composed of scoria; synonymous with cinder cone.

Volcanic Dome

A dome-shaped volcanic feature, largely composed of solidified lava of felsic to intermediate composition.