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

question 78

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. The p-value of the test is _____.

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Definitions:

Agree

To consent or concur in opinion, feeling, or position, often used in contexts where individuals are in harmony or acceptance with others or decisions.

Central Route

A persuasion method that focuses on logic, facts, and the content of messages to influence beliefs or attitudes.

Social Conformity

Social conformity is the act of matching attitudes, beliefs, and behaviors to group norms or expectations.

Logic

The systematic study of valid rules of inference, ensuring the soundness of arguments and reasoning processes.