An Industry Study Was Recently Conducted in Which the Sample

question 104

Multiple Choice

An industry study was recently conducted in which the sample correlation between units sold and marketing expenses was 0.57. The sample size for the study included 15 companies. Based on the sample results, test to determine whether there is a significant positive correlation between these two variables. Use an alpha = 0.05

• A) Because t = 2.50 > 1.7709, do not reject the null hypothesis. There is not sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this
• Industry.
• B) Because t = 2.50 > 1.7709, reject the null hypothesis. There is sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this industry.
• C) Because t = 3.13 > 1.7709, do not reject the null hypothesis. There is not sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this
• Industry.
• D) Because t = 3.13 > 1.7709, reject the null hypothesis. There is sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this industry.

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