TABLE 13-4
the Managers of a Brokerage Firm Are Interested

question 145

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.
$\begin{array}{lll}\text { Broker } & \text { Clients } & \text { Sales } \\1 & 27 & 52 \\2 & 11 & 37 \\3 & 42 & 64 \\4 & 33 & 55 \\5 & 15 & 29 \\6 & 15 & 34 \\7 & 25 & 58 \\8 & 36 & 59 \\9 & 28 & 44 \\10 & 30 & 48 \\11 & 17 & 31 \\12 & 22 & 38\end{array}$

-Referring to Table 13-4, the managers of the brokerage firm wanted to test the hypothesis that the number of new clients brought in had a positive impact on the amount of sales generated. At a level of significance of 0.01, the null hypothesis should be________ (accepted or rejected).

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Definitions:

Profit Margin

A component of the rate of return on investment, computed as the ratio of income from operations to sales.

Market Selling Price

The price at which a product is sold to the public, determined by supply, demand, and other market factors.

Target Costing

The target cost is determined by subtracting a desired profit from a market-determined price. The resulting target cost is used to motivate cost improvements in design and manufacture.

Selling Price

The amount of money for which a product or service is sold.