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

question 37

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 partial F test for $H _ { 0 }$ : Variable $X _ { 2 }$ does not significantly improve the model after variable $X _ { l }$ has been included $H _ { 1 }$ : Variable $X _ { 2 }$ significantly improves the model after variable $X _ { I }$ has been included has $\underline{\quad\quad}$ and $\underline{\quad\quad}$ degrees of freedom.

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The advised level of effort or exertion in physical activity, often expressed as a percentage of maximum heart rate or capacity.

Health-Related Fitness

Components of physical fitness that contribute to the proper functioning of the body's systems and improve health, including cardiovascular fitness, muscle strength, endurance, flexibility, and body composition.

Physically Active

Engaging in bodily movements that expend energy, including exercises, sports, and daily physical tasks.

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The proportion of fat, bone, water, and muscle in human bodies, often used in fitness and health assessments to determine the ratio of fat to lean mass.