THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 148

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 : β₄ = 0 against H₁ : β₄ ≠ 0 and interpret your result.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for financing short-term liabilities, with maturities ranging from a few days to 270 days.

TSX

The Toronto Stock Exchange, one of the largest stock exchanges in the world, based in Canada.

DAX

A blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange.

FTSE

The Financial Times Stock Exchange (FTSE) is a series of indices that represent the performance of stocks listed on the London Stock Exchange.