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.

---

Definitions:

Swiss Franc

The national currency of Switzerland, known for its stability and being a safe-haven currency in times of financial uncertainty.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Foreign Exchange

The global market for trading currencies, enabling the conversion of one currency into another.

U.S. Dollar

The currency unit of the United States, widely used globally in international trade and as a reserve currency.