SCENARIO 13-9 It Is Believed That, the Average Numbers of Hours Spent

question 80

Multiple Choice

SCENARIO 13-9
It is believed that, the average numbers of hours spent studying per day (HOURS) during undergraduate education should have a positive linear relationship with the starting salary (SALARY, measured in thousands of dollars per month) after graduation. Given below is the Excel output for predicting starting salary (Y) using number of hours spent studying per day (X) for a sample of 51 students. NOTE: Only partial output is shown.


Note: 2.051 E - 05 = 2.051*1^0-5 and 5.944 E -18 = 5.944 *10 ^-18 .
-Referring to Scenario 13-9,the 90% confidence interval for the average change in SALARY (in thousands of dollars) as a result of spending an extra hour per day studying is

• A)wider than [-2.70159,-1.08654].
• B)narrower than [-2.70159,-1.08654].
• C)wider than [0.8321927,1.12697].
• D)narrower than [0.8321927,1.12697].

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Infrequent Gain/Loss

Earnings or losses that arise from events that are not expected to recur regularly, distinguished from ordinary operational results.

Continuing Operations

The segments of a business expected to continue operating into the foreseeable future, excluding any discontinued operations.

Extraordinary Item

An unusual and infrequent gain or loss that is reported separately in the financial statements.