A Researcher Analyzes the Factors That May Influence Amusement Park

question 86

Multiple Choice

A researcher analyzes the factors that may influence amusement park attendance. She estimates the following model: Attendance = β₀ + β₁Price + β₂Temperature + β₃Rides + ε, where Attendance is the daily attendance (in 1,000s) , Price is the gate price (in $) , Temperature is the average daily temperature (in °F) , and Rides is the number of rides at the amusement park. A portion of the regression results is shown in the accompanying table. When testing whether Rides is significant at the 1% significance level, she ________.

• A) rejects H₀: β₃ = 0, and concludes that Rides is significant
• B) does not reject H₀: β₃ = 0, and concludes that Rides is significant
• C) rejects H₀: β₃ = 0, and cannot conclude that Rides is significant
• D) does not reject H₀: β₃ = 0, and cannot conclude that Rides is significant

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Definitions:

Ledger

A book or database in which financial transactions are recorded, organized by account.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Work Sheet

An informal accounting document used internally to compile information for the financial statements and to support adjustments to those statements.

Balance Sheet Accounts

Accounts that appear on the balance sheet, including assets, liabilities, and shareholders' equity accounts, reflecting the financial position of a business.