SCENARIO 18-3 A Financial Analyst Wanted to Examine the Relationship Between Salary

question 22

Short Answer

SCENARIO 18-3
A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 variables: age (X₁ = Age),experience in the field (X₂ = Exper),number of degrees (X₃ = Degrees),and number of previous jobs in the field (X₄ = Prevjobs).He took a sample of 20 employees and obtained the following Microsoft Excel output:

-Referring to Scenario 18-3,the value of the F-statistic for testing the significance of the entire regression is .

---

Definitions:

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total taxes paid by the total income.

Income

Cash inflow, regularly obtained, as compensation for work or earnings from invested capital.

Average Tax Rate

The average tax rate is the proportion of total taxable income paid in taxes, calculated by dividing the total tax paid by the total income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed.