SCENARIO 14-8 A Financial Analyst Wanted to Examine the Relationship Between Salary

Short Answer

SCENARIO 14-8
A financial analyst wanted to examine the relationship between salary (in $1,000) and 2 variables: age (X₁ = Age) and experience in the field (X₂ = Exper). He took a sample of 20 employees and obtained the following Microsoft Excel output:


Also, the sum of squares due to the regression for the model that includes only Age is 5022.0654 while the sum of squares due to the regression for the model that includes only Exper is 125.9848.
-Referring to Scenario 14-8,_____% of the variation in salary can be explained by the variation in experience while holding age constant.