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

question 83

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 90% confidence interval for the average change in SALARY (in thousands of dollars) as a result of spending an extra hour per day studying is

• A) wider than [-2.70159, -1.08654].
• B) narrower than [-2.70159, -1.08654].
• C) wider than [0.8321927, 1.12697].
• D) narrower than [0.8321927, 1.12697].

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Definitions:

Affect Heuristic

The reliance on instinct instead of analysis in making decisions.

Endowment Effect

A cognitive bias in which individuals value an owned object higher than its market value, simply because they own it.

Affect Heuristic

A mental shortcut that influences decision-making based on emotions and feelings.

Street Smarts

Practical knowledge and experience in dealing with everyday situations or challenges, often contrasted with book learning.