SCENARIO 13-17
Given Below Are Results from the Regression Analysis

question 268

True/False

SCENARIO 13-17
Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy) and the independent variables are the age of the worker (Age) and a dummy variable for management position (Manager: 1 = yes, 0 = no).
The results of the regression analysis are given below: $$\begin{array}{l}\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.6391 \\\text { R Square } & 0.4085 \\\text { Adjusted R Square } & 0.3765 \\\text { Standard Error } & 18.8929 \\\text { Observations } & 40 \\\hline\end{array}\\\\\text { ANOVA }\\\begin{array} { l r r r r r } \hline &{ \text { df } } & { \text { SS } } & { \text { MS } } &{ \text { F } } & { \text { Significance } F } \\\hline \text { Regression } & 2 & 9119.0897 & 4559.5448 & 12.7740 & 0.0000 \\\text { Residual } & 37 & 13206.8103 & 356.9408 & \\\text { Total } & 39 & 22325.9 & & \\\hline\end{array}\\\\\begin{array} { l r r r r } \hline & \text { Coefficients } & \text { Standard Error } & { t \text { Stat } } & { P \text {-value } } \\\hline \text { Intercept } & - 0.2143 & 11.5796 & - 0.0185 & 0.9853 \\\text { Age } & 1.4448 & 0.3160 & 4.5717 & 0.0000 \\\text { Manager } & - 22.5761 & 11.3488 & - 1.9893 & 0.0541 \\\hline\end{array}\end{array}$$
-Referring to SCENARIO 13-17, there is sufficient evidence that all of the explanatory variables are related to the number of weeks a worker is unemployed due to a layoff at a 10% level of significance.

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Definitions:

Economic Profit

the difference between total revenue and total opportunity costs; a measure of profit beyond the normal return on investment.

Marginal Cost

The addition to total cost from producing one additional unit of a product.

Perfectly Competitive Firm

A perfectly competitive firm operates in a market where there are many buyers and sellers, the product is homogenous, and there is free entry and exit from the market.

Economic Profit

The gap in financial terms between total earnings and all financial burdens, considering both express and tacit costs.