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

question 44

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 analyst wants to use a t test to test for the significance of the coefficient of X3. For a level of significance of 0.01, the critical values of the test are______

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Definitions:

Economic Outcomes

The results or consequences of economic activities, including growth, employment levels, and wealth distribution.

Context Affects

The influence of situational and environmental factors on perceptions, decisions, and behaviors.

Preferences

Individual tastes or desires that influence their choices among various goods, services, or outcomes.

Fewer Errors

A reduction in mistakes or inaccuracies, often resulting in improved efficiency, quality, or performance in various contexts.