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

question 281

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 partial F test forH0: Variable X2 does not significantly improve the model after variable X1 has been includedH1: Variable X2 significantly improves the model after variable X1 has been included has and degrees of freedom.

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Definitions:

Original Position

A theoretical situation in John Rawls' theory of justice where individuals select principles of justice behind a veil of ignorance, unaware of their personal characteristics.

Rawls

John Rawls, a prominent American philosopher known for his work in political philosophy, particularly the theory of justice as fairness.

Minkoff and Paltrow

Referring to individuals or authors who may have contributed to literature or research, but without specific context, it's challenging to provide a detailed definition.

Fetuses

The term for a developing human during pregnancy after the embryonic stage and until birth.