TABLE 14-8
a Financial Analyst Wanted to Examine $\text {SUMMARY OUTPUT}$

question 96

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 value of the adjusted coefficient of multiple determination, adj
r², is _____.

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Definitions:

Corporate Executives

Senior management officials within a corporation, responsible for making major corporate decisions.

Profit Centers

Segments or areas of a business that are responsible for generating their own revenues and profits.

Incentives

Rewards or penalties designed to encourage or discourage specific behaviors among individuals or groups, often used in economic and business contexts.

Information

is data that is processed, organized, or presented in a manner that makes it meaningful and useful for decision-making, learning, or analysis.