Question 3 A financial analyst wanted to examine the relationship between salary

Question

Question 3 A financial analyst wanted to examine the relationship between salary (in $100) and four variables: age (X, - Age), experience in the field (X2 – Experience), number of degrees (X, - Degrees), and number of previous jobs in the field (X, - Previous Jobs). He took a sample of 20 employees and obtained the following Microsoft Excel partial output: Mean Square Summary Output Multiple R = 0.992 Number of Observation = 20 ANOVA Source Degree of Freedom Sum of Squares Regression 4609.83164 Residual/Error 77.11836 Total 4686.95 Regression Components Coefficient Intercept -9.61 Age 1.33 | Experience -0.11 Degrees 7.31 Previous Jobs -0.51 Standard Error 2.78 0.12 0.14 0.81 0.45 a) Determine the adjusted R-square for the above regression model. Ans: 0.9798 b) Determine whether there is a significant relationship between salary and the four explanatory variables at the 1% level of significance. Ans: F-Test-224.16 c) At the 1% level of significance, determine whether each of the independent variable makes a significant contribution to salary in the regression model. Ans: B# 0; B2 = 0; B3 + 0; B=0

Explanation / Answer

Question 3 :

In question we have given total 20 observation :

So DF for total = n - 1 = 20 - 1 = 19

Number of variables = 4 = DF regression = 4 - 1 = 3

DF for error = DF total - DF regression = 19 -3 = 16

MS = SS / DF

So the complete table : -

For Qustion 4 :

DF for variable : number of variables - 1 = 3 -1 = 2

DF of error = DF of total - DF of variable = 49 - 2 = 47

SSerror = SStotal - SS regression =4820-3905.7736 = 77.11836

MS = SS/ DF

So complete ANOVA table :

Multiple regression : y^ = -1.6335 + 0.4485 x1 +4.2615 x2 - 0.6517 x3

Source DF SS MS Regression 3 4609.832 1536.611 Error 16 77.11836 4.819898 Total 19 4686.95

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.