An Industry Study Was Recently Conducted in Which the Sample

question 47

Multiple Choice

An industry study was recently conducted in which the sample correlation between units sold and marketing expenses was 0.57.The sample size for the study included 15 companies.Based on the sample results,test to determine whether there is a significant positive correlation between these two variables.Use an alpha = 0.05

• A)Because t = 2.50 > 1.7709,do not reject the null hypothesis.There is not sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this industry.
• B)Because t = 2.50 > 1.7709,reject the null hypothesis.There is sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this industry.
• C)Because t = 3.13 > 1.7709,do not reject the null hypothesis.There is not sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this industry.
• D)Because t = 3.13 > 1.7709,reject the null hypothesis.There is sufficient evidence to conclude there is a positive linear relationship between sales units and marketing expense for companies in this industry.

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Definitions:

Strike

A work stoppage caused by the mass refusal of employees to work, usually in an attempt to gain better wages or working conditions.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all inputs are used efficiently.

Economic Growth

Refers to the increase in the production of economic goods and services, from one period to another, often measured by GDP (Gross Domestic Product).

Technological Advance

The development of new technologies or the improvement of existing technologies to enhance productivity, efficiency, or quality in goods and services.