SCENARIO 13-7
the Department Head of the Accounting Department Wanted

question 188

Short Answer

SCENARIO 13-7
The department head of the accounting department wanted to see if she could predict the GPA of students using the number of course units and total SAT scores of each.She takes a sample of 6 students and generates the following Microsoft Excel output: SUMMARY OUTPUT
Regression Statistics
$\begin{array} { l l } \text { Multiple R } & 0.916 \\ \text { R Square } & 0.839 \\ \text { Adjusted R Square } & 0.732 \\ \text { Standard Error } & 0.24685 \\ \text { Observations } & 6 \end{array}$

ANOVA
$\begin{array} { l r c c r c } & d f & \text { SS } & \text { MS } & F & \text { Signif } F \\ \text { Regression } & 2 & 0.95219 & 0.47610 & 7.813 & 0.0646 \\ \text { Residual } & 3 & 0.18281 & 0.06094 & & \\ \text { Total } & 5 & 1.13500 & & & \end{array}$

$\begin{array} { l c r c c } & \text { Coeff } & \text { StdError } & t \text { Stat } & P \text {-value } \\ \text { Intercept } & 4.593897 & 1.13374542 & 4.052 & 0.0271 \\ \text { Units } & - 0.247270 & 0.06268485 & - 3.945 & 0.0290 \\ \text { Total SAT } & 0.001443 & 0.00101241 & 1.425 & 0.2494 \end{array}$
-Referring to SCENARIO 13-7, the department head wants to use a t test to test for the significance of the coefficient of X1.The value of the test statistic is .

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that is financed by stockholders' equity.

Total Liabilities

The combined amount of a company's short-term and long-term debts, representing claims against the company's assets by outsiders.

Stockholders' Equity

The value remaining in a company after liabilities are subtracted from assets, representing what is owned by the shareholders.