Suppose your company hires a lot of accountants. A consulting firm uses a regression model to estimate
Question:
Suppose your company hires a lot of accountants. A consulting firm uses a regression model to estimate the partial effects of different characteristics on the starting salaries of accountants. The variables of the regression model include: Y=Salary= The starting salary measured in dollars X 1 = Experience = Ye Years of relevant experience X 2 =Firm Size= Number of employees at the firm
a. In words , interpret the meaning of the y-intercept .
b. In words, interpret the meaning of the value of unstandardized slope coefficient on the Experience variable. More specifically, write down the value and explain what that specific value means.
c. Using the test statistic method, do a hypothesis test for whether a linear relationship exists between the number of employees at a firm and the starting salary of an accountant. Show all steps to your hypothesis test and use a significance level of 5%
d. In words, interpret the R-square value.
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris