SCENARIO 14-8 a Financial Analyst Wanted to Examine the Relationship $\$ 1,000$

question 209

Short Answer

SCENARIO 14-8 A financial analyst wanted to examine the relationship between salary (in $\$ 1,000$ ) and 2 variables: age $\left(X_{1}=\mathrm{Age}\right)$ and experience in the field $\left(X_{2}=\right.$ Exper). He took a sample of 20 employees and obtained the following Microsoft Excel output:

$\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8535 \\\text { R Square } & 0.7284 \\\text { Adjusted R Square } & 0.6964 \\\text { Standard Error } & 10.5630 \\\text { Observations } & 20 \\\hline\end{array}$

$\text { ANOVA }$


$\begin{array}{lrrrrrr} & \text { Coefficients } & \text { Standard Error } & {\text { t Stat }} & \text { P-value } & \text { Lower 95\% } &{\text { O5\% }} \\\hline \text { Intercept } & 1.5740 & 9.2723 & 0.1698 & 0.8672 & -17.9888 & 21.1368 \\\text { Age } & 1.3045 & 0.1956 & 6.6678 & 0.0000 & 0.8917 & 1.7173 \\\text { Exper } & -0.1478 & 0.1944 & -0.7604 & 0.4574 & -0.5580 & 0.2624 \\\hline\end{array}$
Also the sum of squares due to the regression for the model that includes only Age is 5022.0654 while the
sum of squares due to the regression for the model that includes only Exper is 125.9848.
-Referring to Scenario 14-8, the analyst wants to use a t test to test for the significance of the
coefficient of $X _ { 2 }$ . The p-value of the test is ________.

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Definitions:

Disjunctive Premise

A logical statement composed of two or more propositions joined by the word "or," indicating alternatives.

Conclusion

The final statement in a logical argument or reasoning process, derived from the premises.

Hypothetical Proposition

A hypothetical proposition is a conditional statement proposing a possible scenario and its outcome, often structured in an if-then format.

Antecedent

The first part of a conditional statement, the "if" portion, which if true leads to the consequence.