Multiple Regression Analysis Was Used to Study How an Individual's $\alpha$

question 86

Essay

Multiple regression analysis was used to study how an individual's income (Y in thousands of dollars) is influenced by age (X₁ in years), level of education (X₂ ranging from 1 to 5), and the person's gender (X₃ where 0 =female and 1=male). The following is a partial result of a computer program that was used on a sample of 20 individuals.

a.Compute the coefficient of determination.
b.Perform a t test and determine whether or not the coefficient of the variable "level of education" (i.e., X₂) is significantly different from zero. Let $\alpha$ = 0.05.
c.At $\alpha$ = 0.05, perform an F test and determine whether or not the regression model is significant.
d.As you note the coefficient of X₃ is -0.510. Fully interpret the meaning of this coefficient.

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Definitions:

End A Marriage

The legal termination of a marital union, known as divorce, which dissolves the bonds of matrimony between married individuals.

Court Decree

A formal and authoritative order issued by a court, requiring parties to do or not do something.

Invalidates

To make something legally null and void or to render it ineffective by establishing its incorrectness or inapplicability.

Community Property

A form of ownership between married couples in some states, where assets acquired during the marriage are considered jointly owned.