SCENARIO 15-6 Given Below Are Results from the Regression Analysis on 40

question 14

Short Answer

SCENARIO 15-6
Given below are results from the regression analysis on 40 observations where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Y)and the independent variables are the age of the worker (X₁),the number of years of education received (X₂),the number of years at the previous job (X₃),a dummy variable for marital status (X₄: 1 = married,0 = otherwise),a dummy variable for head of household (X₅: 1 = yes,0 = no)and a dummy variable for management position (X₆: 1 = yes,0 = no).
The coefficient of multiple determination ( R ²_j )for the regression model using each of the 6 variables X _j as the dependent variable and all other X variables as independent variables are,respectively,
0.2628,0.1240,0.2404,0.3510,0.3342 and 0.0993.
The partial results from best-subset regression are given below:

-Referring to Scenario 15-6,what is the value of the Mallow's C_p statistic for the model that includes X₁,X₃,X₅ and X₆?

---

Definitions:

Market Value

The current value of an asset or company based on the price that a buyer is willing to pay in the market.

Liquidating Dividend

A type of dividend payment made by a corporation using its capital base rather than earnings, typically during partial or full liquidation.

Dividend Policy

A strategy a company uses to decide how much it will pay out to shareholders in dividends.

Alternate Dividend Policy

A strategy employed by a company to distribute earnings to shareholders through dividends that may vary in amount and frequency depending on the company's earnings, investment opportunities, and capital needs.