THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 195

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose you are interested in determining the factors that influence the time required to prepare a tax return.You develop the model Y = β₀ + β₁X₁ + β₂X₂ + β₃


+ β₄X₃ + β₅X₄ + β₆(X₁ ∙ X₄) + ε,where Y is the amount of time in minutes,X₁ is the income of the individual (in thousands of dollars),X₂ is the age of the individual,X₃ is the number of people living in the household,and X₄ is a dummy variable that takes the value 1 if the individual owns his or her own home.After interviewing 40 accountants,you obtained
= 17.2 + 0.38x₁ + 1.04x₂ - 0.04
+ 2.15x₃ + 0.11x₄ - 0.22(x₁ ∙ x₄),
= 5.3,
= 0.13,
= 0.33,
= 1.51,
= 4.7,
= 0.05,and
= 0.07.
-Test the hypothesis H₀ : β₄ = 0 and interpret your result.

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Definitions:

Psychological Theories

Principles formulated to understand and explain mental functions, behavior, and the dynamics of personality.

Universal Relevance

The quality of being significant or applicable in all situations, places, or times.

Meta-Theory

A theory about theories; it examines the structures, purposes, and methodologies of theories.

Obedience To Authority

The tendency of individuals to comply with orders or directives from someone in a position of power, regardless of personal ethics.