A survey conducted by a research team was to investigate how the education level, tenure in current employment, and age, are related to annual income. A sample of 20 employees is selected and the data is given below.
Education (No. of years) Length of tenure in current employment (No. of years) Age (No. of years) Annual income ($)
17 8 40 124,000
12 12 41 30,000
20 9 44 193,000
14 4 42 88,000
12 1 19 27,000
14 9 28 43,000
12 8 43 96,000
18 10 37 110,000
16 12 36 88,000
11 7 39 36,000
16 14 36 81,000
12 4 22 38,000
16 17 45 140,000
13 7 42 11,000
11 6 18 21,000
20 4 40 151,000
19 7 35 124,000
16 12 38 48,000
12 2 19 26,000
10 6 44 124,000
a. Determine the estimated multiple linear regression equation that can be used to predict the annual income given number of years school completed (Education), length of tenure in current employment, and age.
b. Use the F test to determine the overall significance of the regression relationship. What is the conclusion at the 0.05 level of significance?