SCENARIO 13-8
a Financial Analyst Wanted to Examine the Relationship

question 102

Short Answer

SCENARIO 13-8
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: $$\begin{array}{l}\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.8535 \\\text { R Square } & 0.7284 \\\text { Adjusted R Square } & 0.6964 \\\text { Standard Error } & 10.5630 \\\text { Observations } & 20 \\\hline\end{array}\\\\\text { ANOYA }\\\begin{array} { l r c c c c } & d f & \text { SS } & \text { MS } & \text { F } & \text { Siqnificonce F } \\\hline \text { Regression } & 2 & 5086.5764 & 2543.2882 & 22.7941 & 0.0000 \\\text { Residual } & 17 & 1896.8050 & 111.5768 & & \\\text { Total } & 19 & 6983.3814 & & & \\\hline\end{array}\\\\\begin{array} { l r r r r r r } \hline & \text { Coefficients } & \text { Standard Error } & { t \text { Stat } } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 1.5740 & 9.2723 & 0.1698 & 0.8672 & - 17.9888 & 21.1368 \\\text { Age } & 1.3045 & 0.1956 & 6.6678 & 0.0000 & 0.8917 & 1.7173 \\\text { Exper } & - 0.1478 & 0.1944 & - 0.7604 & 0.4574 & - 0.5580 & 0.2624 \\\hline\end{array}\end{array}$$
-Referring to SCENARIO 13-8, the analyst wants to use a t test to test for the significance of the coefficient of X2.The value of the test statistic is .

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Definitions:

Conservation of Mass

A principle stating that mass is neither created nor destroyed in a closed system through physical and chemical changes.

Conservation of Volume

The understanding that the quantity of a substance remains the same despite changes in its shape or container.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developed during early infancy.

Conservation

The principle of maintaining the integrity of the environment and natural resources.