Multiple Regression Analysis Was Used to Study How an Individual's $\alpha$

question 2

Essay

Multiple regression analysis was used to study how an individual's income (Y in thousands of dollars) is influenced by age (X₁ in years), level of education (X₂ ranging from 1 to 5), and the person's gender (X₃ where 0 =female and 1=male). The following is a partial result of a computer program that was used on a sample of 20 individuals.
a.Compute the coefficient of determination.
b.Perform a t test and determine whether or not the coefficient of the variable "level of education" (i.e., X₂) is significantly different from zero. Let $\alpha$ = 0.05.
c.At $\alpha$ = 0.05, perform an F test and determine whether or not the regression model is significant.
d.As you note the coefficient of X₃ is -0.510. Fully interpret the meaning of this coefficient.

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Definitions:

Western Capitalism

A socio-economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined primarily by competition in a free market.

Natural Resources

Materials and components found in nature that can be used for economic gain or necessary for life, such as water, timber, and minerals.

Powerful Nations

Countries that possess significant political, economic, and military influence on a global scale.

Stratification

The hierarchical arrangement of individuals in a society based on factors like wealth, income, race, education, and power.