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

question 25

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. At a level of significance of 0.01, the null hypothesis should be ________ (rejected or not rejected).

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Definitions:

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities.

Bonus Structures

The design of additional compensation methods to employees, typically based on performance criteria.

Mortgage-Backed Securities

Financial instruments that are secured by mortgages, with payments derived from the underlying loans.

Economic Efficiency

The optimal allocation of resources to maximize the production of goods and services without wasting any resources.