TABLE 13-4 The Managers of a Brokerage Firm Are Interested in Finding

question 120

Short Answer

TABLE 13-4
The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker. They sample 12 brokers and determine the number of new clients they have enrolled in the last year and their sales amounts in thousands of dollars. These data are presented in the table that follows.
-Referring to Table 13-4, the managers of the brokerage firm wanted to test the hypothesis that the population slope was equal to 0. At a level of significance of 0.01, the null hypothesis should be ________ (rejected or not rejected).

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Definitions:

Target Profit

The projected profit a firm aims to achieve within a specific period, guiding pricing and production decisions.

Full Cost

The total cost of production, encompassing direct and indirect costs.

Mark-Up Percentage

The proportion of cost added to the selling price over the actual cost to achieve profit.

Target Profit

The amount of net income a company aims to achieve within a specific period as part of its financial and operational goals.