SCENARIO 14-8 A Financial Analyst Wanted to Examine the Relationship Between Salary

question 200

Short Answer

SCENARIO 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000) and 2 variables: age (X₁ = Age) and experience in the field (X₂ = Exper). He took a sample of 20 employees and obtained the following Microsoft Excel output:


Also, the sum of squares due to the regression for the model that includes only Age is 5022.0654 while the sum of squares due to the regression for the model that includes only Exper is 125.9848.
-Referring to Scenario 14-7,the department head wants to use a t test to test for the significance of the coefficient of X₁.For a level of significance of 0.05,the critical values of the test are
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Definitions:

Pediment

A gently sloping, low-relief plain or erosion surface carved onto bedrock, commonly with a thin, discontinuous veneer of sediment.

Alluvial Fan

A fan-shaped deposit formed where a fast-flowing stream flattens, slows, and spreads typically at the exit of a canyon onto a flatter plain.

Glaciers

Massive, slow-moving rivers of ice that form in regions where snowfall exceeds snowmelt over many years.

Air Temperatures

Refer to the current state of the atmosphere's warmth, measured in degrees Celsius or Fahrenheit.