Twenty-one executives in a large corporation were randomly selected to study the effect of several factors on annual salary (expressed in $000s). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to, and the level of their responsibility. The results of the regression analysis follow:
Test the hypothesis that the regression coefficient for age is equal to 0 at the 0.05 significance level. Report the critical value, the calculated test-statistic, and your decision.
A) t-critical = $\pm$2.131, t-calculated = -0.169, fail to reject.
B) t-critical = $\pm$2.131, t-calculated = -0.183, fail to reject.
C) t-critical = $\pm$1.753, t-calculated = -0.169, fail to reject.
D) t-critical = $\pm$1.753, t-calculated = -0.169, reject.

Question

Twenty-one executives in a large corporation were randomly selected to study the effect of several factors on annual salary (expressed in $000s). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to, and the level of their responsibility. The results of the regression analysis follow: 
 Test the hypothesis that the regression coefficient for age is equal to 0 at the 0.05 significance level. Report the critical value, the calculated test-statistic, and your decision.
A) t-critical = $\pm$2.131, t-calculated = -0.169, fail to reject. 
B) t-critical = $\pm$2.131, t-calculated = -0.183, fail to reject. 
C) t-critical = $\pm$1.753, t-calculated = -0.169, fail to reject. 
D) t-critical = $\pm$1.753, t-calculated = -0.169, reject.

Quizplus · Accepted Answer

The Answer of Twenty-one executives in a large corporation were randomly selected to study the effect of several factors on annual salary (expressed in $000s). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to, and the level of their responsibility. The results of the regression analysis follow: 
 Test the hypothesis that the regression coefficient for age is equal to 0 at the 0.05 significance level. Report the critical value, the calculated test-statistic, and your decision.
A) t-critical = $\pm$2.131, t-calculated = -0.169, fail to reject. 
B) t-critical = $\pm$2.131, t-calculated = -0.183, fail to reject. 
C) t-critical = $\pm$1.753, t-calculated = -0.169, fail to reject. 
D) t-critical = $\pm$1.753, t-calculated = -0.169, reject.

Twenty-One Executives in a Large Corporation Were Randomly Selected to Study