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

question 202

Short Answer

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 the correct null hypothesis to test whether age has any effect on the number of weeks a worker is unemployed due to a layoff while
Holding constant the effect of the other independent variable? a) $H _ { 1 } : \beta _ { 1 } = 0$
b) $H _ { 1 } : \beta _ { 1 } \neq 0$
c) $H _ { 1 } : \beta _ { 2 } = 0$
d) $H _ { 1 } : \beta _ { 2 } \neq 0$

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Definitions:

Transfer Payments

Payments to individuals or institutions that are not linked to the current supply of a good or service by the recipient.

Taxpayers

Individuals or entities that are required to pay taxes to a government body, based on income or the sale of goods and services.

Recipients

Individuals or entities that receive something from another party, often in the context of financial aid, awards, or payments.

Government Expenditures

Financial spending by the government sector, including spending on infrastructure, public services, defense, and social programs.