SCENARIO 15-6 Given Below Are Results from the Regression Analysis $( Y )$

question 123

True/False

SCENARIO 15-6 Given below are results from the regression analysis on 40 observations where the dependent variable is the number of weeks a worker is unemployed due to a layoff $( Y )$ and the independent variables are the age of the worker $\left( X _ { 1 } \right)$ , the number of years of education received $\left( X _ { 2 } \right)$ , the number of years at the previous job $\left( X _ { 3 } \right)$ , a dummy variable for marital status ( $X _ { 4 } : 1 =$ married, $0 =$ otherwise), a dummy variable for head of household $\left( X _ { 5 } : 1 = \right.$ yes, $0 =$ no) and a dummy variable for management position $\left( X _ { 6 } : 1 = \right.$ yes, $0 =$ no $)$ .

The coefficient of multiple determination $\left( R _ { j } ^ { 2 } \right)$ for the regression model using each of the 6 variables $X _ { j }$ as the dependent variable and all other $X$ variables as independent variables are, respectively, $0.2628,0.1240,0.2404,0.3510,0.3342$ and $0.0993$ .

The partial results from best-subset regression are given below:
$\begin{array}{|l|r|r|r|}\hline {\text { Model }} & \text { R Square } & \text { Adj. R Square } & \text { Std. Error } \\\hline \text { X1X5X6 } & 0.4568 & 0.4116 & 18.3534 \\\hline \text { X1X2X5X6 } & 0.4697 & 0.4091 & 18.3919 \\\hline \text { X1X3X5X6 } & 0.4691 & 0.4084 & 18.4023 \\\hline \text { X1X2X3X5X6 } & 0.4877 & 0.4123 & 18.3416 \\\hline \text { X1X2X3X4X5X6 } & 0.4949 & 0.4030 & 18.4861 \\\hline\end{array}$

-Referring to Scenario 15-6, the variable X1 should be dropped to remove
collinearity?

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Definitions:

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Histamines

Compounds involved in local immune responses as well as regulating physiological function in the gut and acting as neurotransmitters.

Receptor Sites

Specific regions on the surface of a cell or within a cell to which specific molecules, such as hormones or neurotransmitters, can bind.

Morphine

A potent opiate analgesic drug derived from opium used to relieve severe pain.