THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 10

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,and developed the model: Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + 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 get the following results:
= 17.2 + 3.8x₁ - 1.04x₂ + 2.15x₃ + 15.1x₄,
= 5.3,
= 0.13,
= 0.33,
= 1.51,
= 4.7,SSR = 164.2,SSE = 200.7,and R² = 0.45.
-Test H₀ : β₃ = 0 against H₁ : β₃ ≠ 0 and interpret your result.

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Definitions:

Sense Of Independence

The feeling or perception of being self-sufficient and capable of making decisions without reliance on others.

Socialization With Peers

The process of learning social norms, values, and behaviors through interactions with peers.

Lower-Income Households

Families or living units earning below a specified threshold of income, often facing economic hardships.

Involuntary Immigration

Involuntary immigration refers to the forced movement of people from their homeland to another country, often due to conflict, persecution, or environmental disasters.