A Recent Study of 15 Shoppers Showed That the Correlation

question 95

Multiple Choice

A recent study of 15 shoppers showed that the correlation between the time spent in the store and the dollars spent was 0.235. Using a significance level equal to 0.05, which of the following is true?

• A) The null hypothesis that the population mean is equal to zero should be rejected and we should conclude that the true correlation is not equal to zero.
• B) Based on the sample data there is not enough evidence to conclude that the true correlation is different from zero.
• C) The sample correlation coefficient could be zero since the test statistic does not fall in the rejection region.
• D) The null hypothesis should be rejected because the test statistic exceeds the critical value.

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Definitions:

Peak-period

A time of maximum activity or demand, often leading to higher prices and increased revenue for companies able to meet the demand.

Logistics Department

The division of a company responsible for the management of the movement and storage of materials, goods, and information.

Operating Divisions

Sections of a business organization that operate semi-autonomously, typically responsible for their own budgeting and profit and loss.

Variable Costs

Expenses that change in proportion to the level of production or sales volume.