Instruction 13 $\text { OUTPUT }$ Note: Adj R Square = Adjusted R Square; Std

question 83

Short Answer

Instruction 13.13
A financial analyst wanted to examine the relationship between salary (in $1,000) and four variables: age (X₁ = Age), experience in the field (X₂ = Exper), number of degrees (X₃ = Degrees) and number of previous jobs in the field (X₄ = Prevjobs). He took a sample of 20 employees and obtained the following Microsoft Excel output:
$\text { OUTPUT }$
$\begin{array}{ll}\text { SUMMARY}\\\text { Regression }&\text { Statistics}\\\text { Multiple R } & 0.992 \\\text { R Square } & 0.984 \\\text { Adj. R Square } & 0.979 \\\text { Std. Error } & 2.26743 \\\text { Observations } & 20\end{array}$

$\begin{array}{l}\text { ANOVA }\\\begin{array}{llllll} & \text { df } & \text { SS } & \text { MS } & F & \text { Signif F } \\\text { Regression } & 4 & 4609.83164 & 1152.45791 & 224.160 & 0.0001 \\\text { Residual } & 15 & 77.11836 & 5.14122 & & \\\text { Total } & 19 & 4686.95000 & & &\end{array}\end{array}$

$\begin{array}{lllll} & \text { Coeff } & \text { Std Error } & t \text { Stat } & p \text { value } \\\text { Intercept } & -9.611198 & 2.77988638 & -3.457 & 0.0035 \\\text { Age } & 1.327695 & 0.11491930 & 11.553 & 0.0001 \\\text { Exper } & -0.106705 & 0.14265559 & -0.748 & 0.4660 \\\text { Degrees } & 7.311332 & 0.80324187 & 9.102 & 0.0001 \\\text { Prevjobs } & -0.504168 & 0.44771573 & -1.126 & 0.2778\end{array}$

Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.13,the analyst wants to use an F test to test H₀: $\beta$ ₁ = $\beta$ ₂ = $\beta$ ₃ = $\beta$ ₄ = 0.The appropriate alternative hypothesis is ___________

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Definitions:

Total Expenditures

The sum of all expenses and spending by an individual, organization, or government within a specified period.

Isocost Line

A graph line that shows all combinations of inputs which cost the same total amount.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to generate income or wealth.

Labor

The utilization of human physical and mental capabilities in the crafting of goods and delivery of services.