SCENARIO 12-9
It Is Believed That, the Average Numbers of Hours

question 108

Multiple Choice

SCENARIO 12-9
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. $\begin{array}{lr}{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8857 \\\text { R Square } & 0.7845 \\\text { Adjusted R Square } & 0.7801 \\\text { Standard Error } & 1.3704 \\\text { Observations } & 51 \\\hline\end{array}$
ANOVA
$\begin{array}{lrrrrr} & d f & S S & M S & F & \text { Significance F } \\\hline \text { Regression } & 1 & 335.0472 & 335.0473 & 178.3859 \\\text { Residual } & & & 1.8782 & \\\text { Total } & 50 & 427.0798 & &\end{array}$

$\begin{array}{lrrrrrrr} & \text { Coefficients } & \text { standered Error } & \text { tStat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -1.8940 & 0.4018 & -4.7134 & 0.0000 & -2.7015 & -1.0865 \\\text { Hours } & 0.9795 & 0.0733 & 13.3561 & 0.0000 & 0.8321 & 1.1269\end{array}$ Note: 2.051E - 05 = 2.051 *10-05 and 5.944 E - 18 = 5.944 *10-18 .
-Referring to Scenario 12-9, the estimated change in mean salary (in thousands of dollars) as a result of spending an extra hour per day studying is

• A)-1.8940
• B)0.7845
• C)0.9795
• D)335.0473

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Definitions:

Inventory

The complete quantity of products and supplies kept in inventory by a company, aimed for either sale or manufacturing activities.

Depreciation

Depreciation is the allocation of the cost of a tangible asset over its service life, reflecting the decrease in value due to wear and tear, age, or obsolescence.

Net Investment

The difference between total investment in new physical assets and depreciation on existing assets, indicating the net increase in the capital stock of an economy.

Economy

A system of production, distribution, and consumption of goods and services within a region or country.