SCENARIO 18-10 Given Below Are Results from the Regression Analysis

question 9

Multiple Choice

SCENARIO 18-10 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.The coefficient of partial determination of each of the 6 predictors are, respectively, 0.2807, 0.0386, 0.0317, 0.0141, 0.0958, and 0.1201. 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 Scenario 18-10 Model 1, which of the following is a correct statement?

• A)On average, those who are in a management position are estimated to stay jobless shorter by approximately 1.35 weeks while holding constant the effects of all the Remaining independent variables.
• B)On average, those who are in a management position are estimated to stay jobless shorter by approximately 5.22 weeks while holding constant the effects of all the Remaining independent variables.
• C)On average, those who are in a management position are estimated to stay jobless shorter by approximately 14.30 weeks while holding constant the effects of all the Remaining independent variables.
• D)On average, those who are in a management position are estimated to stay jobless shorter by approximately 24.82 weeks while holding constant the effects of all the Remaining independent variables.

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Definitions:

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Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.

General Liability Insurance

A type of insurance coverage that provides protection against claims of bodily injury, property damage, and personal and advertising injury that a business could face.

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A professional who installs equipment or machinery, which is necessary for a business and may legally be removed by the tenant at the end of a lease.

Testator

One who makes and executes a will.