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

question 350

True/False

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, the null hypothesis $$H _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = 0$$ implies that the number of
weeks a worker is unemployed due to a layoff is not related to one of the explanatory variables.

---

Definitions:

Piecework

A payment method based on the amount of work completed rather than the time taken, frequently used in manufacturing and agriculture.

Variable Pay

A compensation strategy that ties employee pay directly to their performance or achievements, often including bonuses, commissions, and profit-sharing plans.

Competitiveness

The ability of a company or country to maintain and gain market share by producing goods or services more effectively than competitors.

Union Power

The collective strength and influence a group of workers has through their union, often used to negotiate working conditions and wages.