TABLE 13-17 Given Below Are Results from the Regression Analysis Where the Where

question 216

True/False

TABLE 13-17
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), the number of years of education received (Edu), the number of years at the previous job (Job Yr), a dummy variable for marital status (Married: 1 = married, 0 = otherwise), a dummy variable for head of household (Head: 1 = yes, 0 = no) and a dummy variable for management position (Manager: 1 = yes, 0 = no). We shall call this Model 1.


Model 2 is the regression analysis where the dependent variable is Unemploy and the independent variables are Age and Manager. The results of the regression analysis are given below:


-Referring to Table 13-17 Model 1, there is sufficient evidence that age has an effect on the number of weeks a worker is unemployed due to a layoff, while holding constant the effect of all the other independent variables at a 10% level of significance.

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Definitions:

Labor

Labor refers to the human effort, both physical and mental, used to produce goods and services.

Close Substitutes

Goods or services that can be used in place of each other with relative ease by consumers, based on similar features, functions, or effects.

Elastic

In economics, elasticity refers to the degree to which demand or supply responds to changes in price. High elasticity means a significant change in quantity with a small change in price.

Unit-elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, indicating a unitary elasticity of demand.