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

question 74

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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:   Regression Statistics  Multiple R 0.6391 R Square 0.4085 Adjusted R Square 0.3765 Standard Error 18.8929 Observations 40\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}

 ANOVA \text { ANOVA }
 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)  40.85% of the total variation in the number of weeks a worker is unemployed due to a layoff can be explained by the age of the worker and whether the worker is a manager. B)  40.85% of the total variation in the number of weeks a worker is unemployed due to a layoff can be explained by the age of the worker and whether the worker is a manager After adjusting for the number of predictors and sample size. C)  40.85% of the total variation in the number of weeks a worker is unemployed due to a layoff can be explained by the age of the worker and whether the worker is a manager After adjusting for the level of significance D)  40.85% of the total variation in the number of weeks a worker is unemployed due to a layoff can be explained by the age of the worker and whether the worker is a manager Holding constant the effect of all the independent variables.


 Coefficients  Standard Error t Stat  P-value  Intercept 0.214311.57960.01850.9853 Age 1.44480.31604.57170.0000 Manager 22.576111.34881.98930.0541\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?

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Definitions:

Compromise Dividend Policy

An approach to dividend disbursement that attempts to balance the interests of shareholders preferring regular dividends with those favoring reinvestment of profits.

Positive Net Present Value

Indicates that the present value of future cash flows from an investment exceeds the initial investment cost, suggesting profitability.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity.

Stock Repurchase

A company's buying back of its own shares from the marketplace, reducing the number of outstanding shares and often increasing shareholder value.

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