TABLE 13-9 It Is Believed That, the Average Numbers of Hours Spent

question 78

Multiple Choice

TABLE 13-9
It is believed that, the average numbers of hours spent studying per day (HOURS) during undergraduate education should have a positive linear relationship with the starting salary (SALARY, measured in thousands of dollars per month) after graduation. Given below is the Excel output for predicting starting salary (Y) using number of hours spent studying per day (X) for a sample of 51 students. NOTE: Only partial output is shown.

Note: 2.051E - 05 = 2.051*10⁻⁰⁵ and 5.944E - 18 = 5.944*10⁻¹⁸.
-Referring to Table 13-9, the value of the measured t test statistic to test whether mean SALARY depends linearly on HOURS is

• A) -4.7134.
• B) -1.8940.
• C) 0.9795.
• D) 13.3561.

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Definitions:

Incremental Value

Refers to the additional value generated by undertaking a certain action, decision, or investment, compared to doing nothing.

Shares Outstanding

The total number of shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company's officers and insiders.

Market Price

The current selling or buying price for an asset or service.

NPV

Net Present Value; a calculation used to determine the present value of an investment's future cash flows minus the initial investment cost.