The Following Estimated Regression Equation Was Developed Relating Yearly Income

question 48

Multiple Choice

The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) . ​ = 30 + .7x₁ + 3x₂​
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Also provided are SST = 1200 and SSE = 384. If we want to test for the significance of the model, the critical value of F at α = .05 is

• A) 3.33.
• B) 3.35.
• C) 3.34.
• D) 2.96.

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Definitions:

Net Income

The sum a company is left with after all its expenses and taxes are removed from its income.

Crossover Point

The point at which two different financial scenarios yield the same result or where an investment's cost and benefits intersect.

Cash Inflows

Money or funds received by a business during a period of time from various sources including sales, investments, and financing.