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

question 195

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 decision that should be made implies that ________ (there is a or there is no) linear dependent relationship between the independent and dependent variables.

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Definitions:

Budget Variance

The difference between budgeted figures for revenue or expenses and actual figures.

Fixed Overhead Budget

The fixed overhead budget is a financial plan that estimates the fixed costs associated with production, which do not vary with the level of output.

Volume Variance

A measure of the difference between the expected (budgeted) volume of sales or production and the actual volume, used in cost accounting and financial analysis.

Budget Variance

The difference between the budgeted or planned financial activity and the actual financial performance.