TABLE 13-4 The Managers of a Brokerage Firm Are Interested in Finding

question 173

Short Answer

TABLE 13-4
The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker. They sample 12 brokers and determine the number of new clients they have enrolled in the last year and their sales amounts in thousands of dollars. These data are presented in the table that follows.
-Referring to Table 13-4, the managers of the brokerage firm wanted to test the hypothesis that the number of new clients brought in had a positive impact on the amount of sales generated. For a test with a level of significance of 0.01, the null hypothesis should be rejected if the value of the test statistic is ________.

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Definitions:

Net Income

The company's earnings following the deduction of all taxes, expenses, and costs from its total revenue.

Contribution Margin Ratio

A financial metric that measures the ability of a company to cover variable costs with its revenue.

Fixed Costs

Fixed expenses unaffected by variations in production or sales levels, like rent, wages, and insurance.

Target Income

The profit amount that a company aims to achieve within a specific period.