Instruction 13.24 A Financial Analyst Wanted to Examine the Relationship Between Salary

question 57

Short Answer

Instruction 13.24
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:
Note: Adj. R Square = Adjusted R Square; Std. Error = Standard Error
-Referring to Instruction 13.24,the analyst wants to use a t test to test for the significance of the coefficient of X₃.The p-value of the test is_____.

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Definitions:

Constant

A situation or state of affairs that does not change.

Investment Model

Theory that uses three factors—satisfaction, alternatives, and investments—to explain why people stay with their long-term relationship partners.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future decisions but often do.

Alternatives

Different options or choices available in any given situation or decision-making process.