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

question 68

True/False

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 (R²_j) the regression model using each of the 6 variables X_j 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:
$$\begin{array} { | l | l | l | l | } \hline \text { Model } & \text { R Square } & \text { Adj. R Square } & \text { Std. Error } \\\hline X _ { 1 } X _ { 5 } X _ { 6 } & 0.4568 & 0.4116 & 18.3534 \\\hline X _ { 1 } X _ { 2 } X _ { 5 } X _ { 6 } & 0.4697 & 0.4091 & 18.3919 \\\hline X _ { 1 } X _ { 3 } X _ { 5 } X _ { 6 } & 0.4691 & 0.4084 & 18.4023 \\\hline X _ { 1 } X _ { 2 } X _ { 3 } X _ { 5 } X _ { 6 } & 0.4877 & 0.4123 & 18.3416 \\\hline X _ { 1 } X _ { 2 } X _ { 3 } X _ { 4 } X _ { 5 } X _ { 6 } & 0.4949 & 0.4030 & 18.4861 \\\hline\end{array}$$
-Referring to Instruction 16-6,the model that includes all six independent variables should be selected using the adjusted r² statistic.

---

Definitions:

Medicaid

A joint federal and state program that helps with medical costs for some people with limited income and resources.

Health Insurance

Insurance covering the costs of medical and surgical procedures, medications, and sometimes dental expenses for the insured, functioning similarly to healthcare insurance.

Employer

An individual or organization that hires workers to perform services in exchange for compensation.

Taxable

Refers to income or transactions subject to taxation by governmental authorities.