SCENARIO 14-17
Given Below Are Results from the Regression Analysis

question 294

Multiple Choice

SCENARIO 14-17
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: $\begin{array}{l}\hline \ { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.6391 \\\text { R Square } & 0.4085 \\\text { Adjusted R Square } & 0.3765 \\\text { Standard Error } & 18.8929 \\\text { Observations } & 40 \\\hline\end{array}$

$\text { ANOVA }$



$\begin{array} { l r r r r } \hline & \text { Coefficients } & \text { Standard Error } & { t \text { Stat } } & { \text { P-value } } \\\hline \text { Intercept } & - 0.2143 & 11.5796 & - 0.0185 & 0.9853 \\\text { Age } & 1.4448 & 0.3160 & 4.5717 & 0.0000 \\\text { Manager } & - 22.5761 & 11.3488 & - 1.9893 & 0.0541 \\\hline\end{array}$
-Referring to Scenario 14-17, which of the following is a correct statement?

• A) On average, a worker who is a year older is estimated to stay jobless shorter by approximately 0.2143 weeks while holding constant the effects of the manager dummy Variable.
• B) On average, a worker who is a year older is estimated to stay jobless longer by approximately 0.2143 weeks while holding constant the effects of the manager dummy Variable.
• C) On average, a worker who is a year older is estimated to stay jobless shorter by approximately 1.4448 weeks while holding constant the effects of the manager dummy Variable.
• D) On average, a worker who is a year older is estimated to stay jobless longer by approximately 1.4448 weeks while holding constant the effects of the manager dummy Variable.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Backlog

Orders that have been received but not delivered to the customer.

Orders Received

The total number of orders that a company gets from its customers within a certain period.

Long-Term Investments

Assets that are more than 1 year old and are carried on the balance sheet at cost or book value with no appreciation.