Question

The following multiple regression printout can be used to predict a person's average annual salary given his or her years of employment and number of years of education beyond high school. Regression Analysis: Salary Versus YrsEm, Educ Coefficients Term Coef SE Coef T-Value P-Value Constant 23,172 1,770 13.09 0.000 YrsEm 676 144 4.69 0.000 Educ 1,911 374 5.11 0.000 (a) Is the regression coefficient of education (Educ) statistically significant? (Use = 0.05.) Given this output, the regression coefficient

Answer 1

The regression coefficient of education (Educ) is statistically significant.

Step-by-step explanation:

According to the given regression printout, the regression coefficient for education (Educ) is 1,911. The null hypothesis states that the regression coefficient is equal to zero, while the alternative hypothesis states that it is not equal to zero. To test the significance of the regression coefficient, we compare the p-value (0.000) to the significance level (0.05). Since the p-value is less than the significance level, we reject the null hypothesis and conclude that the regression coefficient of education is statistically significant.