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

question 169

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 value of the measured t-test statistic to test whether meanSALARY depends linearly on HOURS is

• A)-4.7134
• B)-1.8940
• C)0.9795
• D)13.3561

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Definitions:

Direct Labor Hours

This term represents the total time spent by workers directly involved in the manufacturing process.

Flexible Budget Graph

A visual representation that shows the difference between actual and expected performance at various levels of activity.

Direct Labor Hours

The cumulative hours that employees, who are engaged directly in creating products or delivering services, spend on work.

Variable Costs

Expenses that vary proportionally with the level of production or sales volume, such as raw materials and direct labor.