Multiple Regression Analysis Was Used to Study How an Individual's $\alpha$

question 63

Essay

Multiple regression analysis was used to study how an individual's income (Y in thousands of dollars)is influenced by age (X₁ in years),level of education (X₂ ranging from 1 to 5),and the person's gender (X₃ where 0 =female and 1=male).The following is a partial result of a computer program that was used on a sample of 20 individuals.

a.Compute the coefficient of determination.
b.Perform a t test and determine whether or not the coefficient of the variable "level of education" (i.e. ,X₂)is significantly different from zero.Let $\alpha$ = 0.05.
c.At $\alpha$ = 0.05,perform an F test and determine whether or not the regression model is significant.
d.As you note the coefficient of X₃ is -0.510.Fully interpret the meaning of this coefficient.

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Definitions:

Incentive Plan

A business strategy designed to motivate and reward employees in order to achieve higher levels of performance.

Organization's Goals

Objectives set by a company or an organization to guide its operations, steer its overall direction, and measure its performance over time.

Employee Empowerment

The practice of giving employees the autonomy, resources, and capabilities to make decisions and contribute to the company's success.

Centralized Decision Making

A decision-making process where major decisions are made by a small group of people or a single person at the top of the organizational hierarchy.