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

question 190

Short Answer

SCENARIO 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 Scenario 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 _____ (rejected or not rejected).

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Definitions:

Diversification

An investment strategy that reduces risk by allocating investments among various financial instruments, industries, or other categories.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Expected Value

A calculation in statistics that quantifies the average outcome of a random event over a large number of occurrences.

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.