Instruction 13-15
a Financial Analyst Wanted to Examine the Relationship

question 67

Short Answer

Instruction 13-15
A financial analyst wanted to examine the relationship between salary (in $1,000)and 4 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:
SUMMARY
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.992 \\ \text { R Square } & 0.984 \\ \text { Adj. R Square } & 0.979 \\ \text { Std. Error } & 2.26743 \\ \text { Observations } & 20 \end{array}$
ANOVA
$\begin{array} { l l l l l l } & \boldsymbol { d f } & \text { SS } & \text { MS } & \boldsymbol { F } & \text { Signif } \boldsymbol { F } \\ \text { Regression } & 4 & 4609.83164 & 1152.45791 & 224.160 & 0.0001 \\ \text { Residual } & 15 & 77.11836 & 5.14122 & & \\ \text { Total } & 19 & 4686.95000 & & & \end{array}$
$\begin{array} { l l l l l } & \text { Coeff } & \text { StdError } & \boldsymbol { t } \text { Stat } & \boldsymbol { P } \text {-Value } \\ \text { Intercept } & - 9.611198 & 2.77988638 & - 3.457 & 0.0035 \\ \text { Age } & 1.327695 & 0.11491930 & 11.553 & 0.0001 \\ \text { Exper } & - 0.106705 & 0.14265559 & - 0.748 & 0.4660 \\ \text { Degrees } & 7.311332 & 0.80324187 & 9.102 & 0.0001 \\ \text { Prevjobs } & - 0.504168 & 0.44771573 & - 1.126 & 0.2778 \end{array}$ Note: Adj.R Square = Adjusted R Square;Std.Error = Standard Error
-Referring to Instruction 13-15,the critical value of an F test on the entire regression for a level of significance of 0.01 is ________.

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Definitions:

Balance of Trade

The difference in value between a country's imports and exports over a given period, indicating the net earnings on foreign trade.

Foreign Trade Sector

The segment of an economy's market dealing with the exchange of goods and services across international borders.

Trade Deficit

A condition where a nation's incoming goods and services are greater than what it sends out.

Domestic Goods Output

The total quantity of goods and services produced within a country's borders, reflecting its domestic economic activity.