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:

Big Bank

A term referring to the largest banks in a country or region, often with a significant influence on the national or global economy.

Foreclosure Action

A legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Midland Bank

A historical financial institution that was one of the Big Four banking groups in the United Kingdom before it was acquired by HSBC in 1992.

Foreclosed

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has failed to make payments, by forcing the sale of the asset used as the collateral for the loan.