Instruction 13 ANOVA Model 2 Is the Regression Analysis Where the Dependent Variable

question 220

True/False

Instruction 13.25
Given below are results from the regression analysis where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Unemploy) and the independent variables are the age of the worker (Age), the number of years of education received (Edu), the number of years at the previous job (Job Yr), a dummy variable for marital status (Married: 1 = married, 0 = otherwise), a dummy variable for head of household (Head: 1 = yes, 0 = no) and a dummy variable for management position (Manager: 1 = yes, 0 = no). We shall call this Model 1.
Model 1
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.7035 \\ \text { R Square } & 0.4949 \\ \text { Adj. R Square } & 0.4030 \\ \text { Std. Error } & 18.4861 \\ \text { Observations } & 40 \end{array}$

ANOVA
$\begin{array} { l l l l l l l } & d f & \text { SS } & \text { MS } & F & \text { Signiff } & \\ \text { Regression } & 6 & 11048.6415 & 1841.4402 & 5.3885 & 0.00057 & \\ \text { Residual } & 33 & 11277.2586 & 341.7351 & & & \\ \text { Total } & 39 & 223325.9 & & & & \\ & & & & & & \\ & \text { Coeff } & \text { StdError } & \text { tStat } & p \text { value } & \text { Lower 95\% } & \text { Upper95\% } \\ \text { Intercept } & 32.6595 & 23.18302 & 1.4088 & 0.1683 & - 14.5067 & 79.8257 \\ \text { Age } & 1.2915 & 0.3599 & 3.5883 & 0.0011 & 0.5592 & 2.0238 \\ \text { Edu } & - 1.3537 & 1.1766 & - 1.1504 & 0.2582 & - 3.7476 & 1.0402 \\ \text { Job Yr } & 0.6171 & 0.5940 & 1.0389 & 0.3064 & - 0.5914 & 1.8257 \\ \text { Married } & - 5.2189 & 7.6068 & - 0.6861 & 0.4974 & - 20.6950 & 10.2571 \\ \text { Head } & - 14.2978 & 7.6479 & - 1.8695 & 0.0704 & - 29.8575 & 1.2618 \\ \text { Manager } & - 24.8203 & 11.6932 & - 2.1226 & 0.0414 & - 48.6102 & - 1.0303 \end{array}$ Model 2 is the regression analysis where the dependent variable is Unemploy and the independent variables are Age and Manager. The results of the regression analysis are given below:
Mode 2
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.6391 \\ \text { R Square } & 0.4085 \\ \text { Adj. R Square } & 0.3765 \\ \text { Std. Error } & 18.8929 \\ \text { Observations } & 40 \end{array}$

ANOVA
$\begin{array} { l l l l l l } & d f & \text { SS } & \text { MS } & F & \text { Signiff } \\ \text { Regression } & 2 & 9119.0897 & 4559.5448 & 12.7740 & 0.0000 \\ \text { Residual } & 37 & 13206.8103 & 356.9408 & & \\ \text { Total } & 39 & 22325.9 & & & \\ & & & & & \\ & \text { Coeff } & \text { StdError } & t \text { Stat } & p \text { value } & \\ \text { Intercept } & - 0.2143 & 11.5796 & - 0.0185 & 0.9853 & \\ \text { Age } & 1.4448 & 0.3160 & 4.5717 & 0.0000 & \\ \text { Manager } & - 22.5761 & 11.3488 & - 1.9893 & 0.0541 & \end{array}$
-Referring to Instruction 13.25 Model 1,there is sufficient evidence that all of the explanatory variables are related to the number of weeks a worker is unemployed due to a layoff at a 10% level of significance.

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Definitions:

Percentage Change

A mathematical calculation that shows how a quantity has changed over time as a proportion of the initial quantity, often used to measure growth or decline.

Inventory Investment

The stock of unsold goods held by a company during a given period, indicating the level of production that goes into inventories.

Gross Investment

represents the total amount spent on purchases of new capital and on replacing depreciated capital within an economy during a specified period.

Capital Stock

The total amount of physical, financial, and human assets used in the production of goods and services in an economy.