Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.For the cubic model,Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε,the following Excel partial output is available.What is the conclusion when testing the individual significance of Age³?

Question

Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results.

Refer to Exhibit 16.6.For the cubic model,Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε,the following Excel partial output is available.What is the conclusion when testing the individual significance of Age³?

Quizplus · Accepted Answer

The Answer of Exhibit 16.6.Thirty employed single individuals were randomly selected to examine the relationship between their age (Age)and their credit card debt (Debt)expressed as a percentage of their annual income.Three polynomial models were applied and the following table summarizes Excel's regression results. Refer to Exhibit 16.6.For the cubic model,Debt = β₀ + β₁Age + β₂Age²+ β₃Age³ + ε,the following Excel partial output is available.What is the conclusion when testing the individual significance of Age³?