Data Is Collected from 20 Sales People in Order to Verify

question 80

Multiple Choice

Data is collected from 20 sales people in order to verify that the more contacts made with potential
Clients, the greater the sales volume. The MegaStat printout is shown below.

Analyzing this printout we can determine:

• A) the value of t indicates that the coefficient of correlation is greater than zero when using the 0.05 level of significance.
• B) the value of t indicates that the coefficient of correlation is greater than zero when using the 0.01 level of significance.
• C) the value of t indicates that the coefficient of correlation cannot be shown to be different than zero when tested at the 0.01 level of significance.
• D) the standard error indicates that the coefficient of correlation is not different from zero.
• E) the value of t indicates that the coefficient of correlation is greater than zero at both the 0.01 and 0.05 levels of significance.

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Definitions:

Financial Leverage

The use of borrowed funds to finance the acquisition of assets, with the expectation that the profits made will be greater than the interest payable.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

ROCE

Return on Capital Employed; an economic metric that evaluates how effectively a firm uses its capital to generate profits.

Variable Costs

Expenses that shift in direct proportion to the amount of production or sales, like labor and materials.