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Instruction 16-6
Given Below Are Results from the Regression Analysis

question 69

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Instruction 16-6
Given below are results from the regression analysis on 40 observations where the dependent variable is the number of weeks a worker is unemployed due to a layoff (Y) and the independent variables are the age of the worker (X1), the number of years of education received (X2), the number of years at the previous job (X3), a dummy variable for marital status (X4: 1 = married, 0 = otherwise), a dummy variable for head of household (X5: 1 = yes, 0 = no) and a dummy variable for management position (X6: 1 = yes, 0 = no).
The coefficient of multiple determination (R2j) the regression model using each of the 6 variables Xj as the dependent variable and all other X variables as independent variables are, respectively, 0.2628, 0.1240, 0.2404, 0.3510, 0.3342 and 0.0993.
The partial results from best-subset regression are given below:
 Model  R Square  Adj. R Square  Std. Error X1X5X60.45680.411618.3534X1X2X5X60.46970.409118.3919X1X3X5X60.46910.408418.4023X1X2X3X5X60.48770.412318.3416X1X2X3X4X5X60.49490.403018.4861\begin{array} { | l | l | l | l | } \hline \text { Model } & \text { R Square } & \text { Adj. R Square } & \text { Std. Error } \\\hline X _ { 1 } X _ { 5 } X _ { 6 } & 0.4568 & 0.4116 & 18.3534 \\\hline X _ { 1 } X _ { 2 } X _ { 5 } X _ { 6 } & 0.4697 & 0.4091 & 18.3919 \\\hline X _ { 1 } X _ { 3 } X _ { 5 } X _ { 6 } & 0.4691 & 0.4084 & 18.4023 \\\hline X _ { 1 } X _ { 2 } X _ { 3 } X _ { 5 } X _ { 6 } & 0.4877 & 0.4123 & 18.3416 \\\hline X _ { 1 } X _ { 2 } X _ { 3 } X _ { 4 } X _ { 5 } X _ { 6 } & 0.4949 & 0.4030 & 18.4861 \\\hline\end{array}
-Referring to Instruction 16-6,the variable X5 should be dropped to remove collinearity.


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