Twenty-One Executives in a Large Corporation Were Randomly Selected to Study

question 115

Multiple Choice

Twenty-one executives in a large corporation were randomly selected to study the effect of several
Factors on annual salary (expressed in $000s) . The factors selected were age, seniority, years of
College, number of company divisions they had been exposed to, and the level of their
Responsibility. The results of the regression analysis follow:
Test the hypothesis that the regression coefficient for education is equal to 0 at the 0.05
Significance level. Report the critical value, the calculated test-statistic, and your decision.

• A) t-critical = ±2.131, t-calculated = 3.752, reject the null hypothesis and conclude that education and salary are significantly related.
• B) t-critical = ±2.131, t-calculated = 3.752, fail to reject.
• C) t-critical = ±1.753, t-calculated = -0.169, fail to reject.
• D) t-critical = ±1.753, t-calculated = -3.752, reject the null hypothesis and conclude that education and salary are significantly related.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.