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

question 192

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 coefficient of partial determination $r _ { Y 1 \cdot 2 } ^ { 2 }$ ⋅ is ____.

Comprehend the impacts of financial planning decisions on a firm’s need for external financing.

Understand and apply the concept of direct and inverse proportionality in real-world scenarios.

Plot data points and interpret graphical representations of directly and inversely proportional relationships.

Calculate the constant of proportionality in direct and inverse proportionality equations.

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