SCENARIO 14-8
a Financial Analyst Wanted to Examine the Relationship $\beta$

question 137

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 14-8,the analyst wants to use an F-test to test H₀ : $\beta$ ₁ = $\beta$ ₂ = 0 .The appropriate alternative hypothesis is .

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