To determine whether profitability of a firm is influenced by age of the manager, the following...

  

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To determine whether profitability of a firm is influenced by age of the manager, the following data was collected. If the envisaged model is: PROFIT = α₁ + α₂AGE + α3AGE² + μ PROFI 3 2 1 2 7 1 T 0 1 5 1 6 AGE i. ii. 3 32 2 2 2 8 4 5 5 4 0 2 24 32 2 28 2 4 5 2 34 2 6 1 4 5 56 6 Find and interpret the relationship Compute and interpret the goodness - of - fit. To determine whether profitability of a firm is influenced by age of the manager, the following data was collected. If the envisaged model is: PROFIT = α₁ + α₂AGE + α3AGE² + μ PROFI 3 2 1 2 7 1 T 0 1 5 1 6 AGE i. ii. 3 32 2 2 2 8 4 5 5 4 0 2 24 32 2 28 2 4 5 2 34 2 6 1 4 5 56 6 Find and interpret the relationship Compute and interpret the goodness - of - fit.

Answer rating: 100% (QA)

Using the least squares method the estimated coefficients are as follows 1 2256 2 065 3 002 Estimate... View the full answer