A Multiple Regression Analysis Between Yearly Income (Y in $1,000s) $\alpha$

question 59

Essay

A multiple regression analysis between yearly income (Y in $1,000s), college grade point average (X₁), age of the individuals (X₂), and the gender of the individual (X₃; zero representing female and one representing male) was performed on a sample of 10 people, and the following results were obtained.
a. Write the regression equation for the above.b. Interpret the meaning of the coefficient of X3.
c. Compute the coefficient of determination.
d. Is the coefficient of X1 significant? Use $\alpha$ = 0.05.
e. Is the coefficient of X2 significant? Use $\alpha$ = 0.05.
f. Is the coefficient of X3 significant? Use $\alpha$ = 0.05.
g. Perform an F test and determine whether or not the model is significant.

---

Definitions:

Trading Possibilities Curves

A graphical representation that shows the maximum amounts of goods that two countries can trade with each other, given their resources and technology.

Comparative Advantage

The skill of an entity—be it an individual, enterprise, or nation—to manufacture a product or deliver a service at a reduced opportunity cost than that of its competitors.

Production Possibilities

The various combinations of goods and services that an economy can produce, given its technological capabilities and available resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade benefits.