SCENARIO 12-10
the Management of a Chain Electronic Store Would

question 18

Multiple Choice

SCENARIO 12-10
The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars) for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results: $$\begin{array} { | l | c | } \hline \text { Customers } & \begin{array} { l } \text { Sales } \\\text { (Thousands of } \\\text { Dollars) }\end{array} \\\hline 907 & 11.20 \\\hline 926 & 11.05 \\\hline 713 & 8.21 \\\hline 741 & 9.21 \\\hline 780 & 9.42 \\\hline 898 & 10.08 \\\hline 510 & 6.73 \\\hline 529 & 7.02 \\\hline 460 & 6.12 \\\hline 872 & 9.52 \\\hline 650 & 7.53 \\\hline 603 & 7.25 \\\hline\end{array}$$
-Referring to Scenario 12-10, which is the correct null hypothesis for testing whether the number of customers who make a purchase affects weekly sales?

• A)\(H _ { 0 } : \beta _ { 0 } = 0\)
• B)\(H _ { 0 } : \beta _ { 1 } = 0\)
• C)\(H _ { 0 } : \mu = 0\)
• D)\(H _ { 0 } : \pi = 0\)

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Definitions:

CCA Tax Shield

The CCA tax shield is a reduction in taxable income for businesses, achieved through claiming depreciation on assets, as permitted by tax laws.

Borrowed Funds Cost

The cost associated with borrowing money, including interest payments and any other fees.

Tax Rate

The tax rate applicable to the income earned by individuals or corporations.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading the cost over its expected useful life.