A Sociologist Wishes to Study the Relationship Between Happiness and Age.He

question 46

Multiple Choice

A sociologist wishes to study the relationship between happiness and age.He interviews 24 individuals and collects data on age and happiness,measured on a scale from 0 to 100.He estimates the following model: Happiness = β₀ + β₁Age + ε.The following table summarizes a portion of the regression results. At the 1% significance level,which of the following is correct?

• A) Do not reject the null hypothesis.At 1% significance level,we conclude that Age is not significant in explaining Happiness.
• B) Do not reject the null hypothesis.At 1% significance level,we conclude that Age is significant in explaining Happiness.
• C) Reject the null hypothesis.At 1% significance level,we conclude that Age is significant in explaining Happiness.
• D) Reject the null hypothesis.At 1% significance level,we conclude that Age is not significant in explaining Happiness.

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Definitions:

Returns To Scale

Describes how output changes in response to a proportional change in all input factors used in production.

Production Function

This concept illustrates how varying amounts of input factors affect the level of production output, showcasing how efficiency can be maximized with certain combinations of inputs.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Production Function

A mathematical model that describes the relationship between input resources and the output of goods or services produced.