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 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. Check if the F test leads to conclude that an overall regression relationship exists. If yes, use the t test to determine the significance of each independent variable. What is the conclusion for each test at the 0.05 level of significance? b. Remove all independent variables that are not significant at the 0.05 level of significance from the estimated regression equation. What is your estimated regression equation in this case?
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