Instruction 13-16
Given Below Are Results from the Regression Analysis

question 168

Multiple Choice

Instruction 13-16
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.
$$\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.7035 \\\text { R Square } & 0.4949 \\\text { Adjusted R } & 0.4030 \\\text { Square } & \\\text { Standard } & 18.4861 \\\text { Error } \\\text { Observations } & 40 \\\hline\end{array}$$ ANOVA
$\begin{array}{lrrrrr}\hline & d f & { S S } & { M S } & F & \text { Significance } F \\\hline \text { Regression } & 6 & 11048.6415 & 1841.4402 & 5.3885 & 0.00057 \\\text { Residual } & 33 & 11277.2586 & 341.7351 & & \\\text { Total } & 39 & 22325.9 & & &\end{array}$

$\begin{array}{lrrrrrr} & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 32.6595 & 23.18302 & 1.4088 & 0.1683 & -14.5067& 79.8257 \\\text { Age } & 1.2915 & 0.3599 & 3.5883 & 0.0011 & 0.5592 &2.0238 \\\text { Edu } & -1.3537 & 1.1766 & -1.1504 & 0.2582 & -3.7476 &1.0402\\\text { JobYr } & 0.6171 & 0.5940 & 1.0389 & 0.3064 & -0.5914 & 1.8257 \\\text { Married } & -5.2189 & 7.6068 & -0.6861 & 0.4974 & -20.6950 & 10.2571 \\\text { Head } & -14.2978 & 7.6479 & -1.8695 & 0.0704 & -29.8575 & 1.2618 \\\text { Manager } & -24.8203 & 11.6932 & -2.1226 & 0.0414 & -48.6102 & -1.0303\end{array}$ 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:
$$\begin{array} { l r } \hline{ \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.6391 \\\text { R Square } & 0.4085 \\\text { Adjusted R } & 0.3765 \\\text { Square } & \\\text { Standard Error } & 18.8929 \\\text { Observations } &40 \\\hline\end{array}$$ $$\begin{array}{l}\text { ANOVA }\\\begin{array} { l r r r l r } \hline & d f & { S S } & { M S } & F & \text { Significance } F \\\hline \text { Regression } & 2 & 9119.0897 & 4559.5448 & 12.7740 & 0.0000 \\\text { Residual } & 37 & 13206.8103 & 356.9408 & & \\\text { Total } & 39 & 22325.9 & & & \\\hline\end{array}\\\begin{array} { l r r r r } \hline & \text { Coefficients } & \text { Standard Error } & { t \text { Stat } } & P \text {-value } \\\hline \text { Intercept } & - 0.2143 & 11.5796 & - 0.0185 & 0.9853 \\\text { Age } & 1.4448 & 0.3160 & 4.5717 & 0.0000 \\\text { Manager } & - 22.5761 & 11.3488 & - 1.9893 & 0.0541 \\\hline\end{array}\end{array}$$
-Referring to Instruction 13-16 Model 1,which of the following is a correct statement?

• A)On average,those who are in a management position are estimated to stay jobless shorter by approximately 5.22 weeks,while holding constant the effects of all the remaining independent variables.
• B)On average,those who are in a management position are estimated to stay jobless shorter by approximately 14.30 weeks,while holding constant the effects of all the remaining independent variables.
• C)On average,those who are in a management position are estimated to stay jobless shorter by approximately 1.35 weeks,while holding constant the effects of all the remaining independent variables.
• D)On average,those who are in a management position are estimated to stay jobless shorter by approximately 24.82 weeks,while holding constant the effects of all the remaining independent variables.

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Definitions:

Government Borrowing

The process by which a government raises funds through issuing debt instruments, such as bonds, to finance public spending beyond tax revenues.

Surplus Funds

Excess money that remains after all expenses and obligations have been met, which can be saved or invested.

Social Security

A government program that provides financial assistance to people with inadequate or no income, primarily targeting the elderly, disabled, and survivors of deceased workers.

Middle-income Recipients

Individuals or families whose income level falls in the middle range of the socioeconomic spectrum in their society.