Data Were Collected for a Sample of 12 Pharmacists to Determine

question 24

Multiple Choice

Data were collected for a sample of 12 pharmacists to determine if years of experience and salary are related. A regression was run with the dependent variable Salary (thousands of dollars) and independent variable Experience (years) . Suppose The P-value associated with the calculated t-statistic is < .001. At the .05 level of Significance we

• A) reject the null hypothesis.
• B) do not reject the null hypothesis.
• C) conclude that years of experience is significant in explaining pharmacists' salary.
• D) Both A and C.
• E) Both B and C.

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Definitions:

Incremental Cash Flows

The additional cash flow an entity receives from undertaking a new project or investment.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Externality

A consequence of an economic activity experienced by unrelated third parties; it can be positive or negative.

Sunk Cost

Expenses that have already been incurred and cannot be recovered, and should not influence future business decisions.