Instruction 12-4
the Managers of a Brokerage Firm Are Interested

question 183

Short Answer

Instruction 12-4
The managers of a brokerage firm are interested in finding out if the number of new customers a broker brings into the firm affects the sales generated by the broker.They sample 12 brokers and determine the number of new customers they have enrolled in the last year and their sales amounts in thousands of dollars.These data are presented in the table that follows.
$\begin{array}{ccc}\text { Broker}&\text {Clients }&\text {Sales }\\\hline1 & 27 & 52 \\2 & 11 & 37 \\3 & 42 & 64 \\4 & 33 & 55 \\5 & 15 & 29 \\6 & 15 & 34 \\7 & 25 & 58 \\8 & 36 & 59 \\9 & 28 & 44 \\10 & 30 & 48 \\11 & 17 & 31 \\12 & 22 & 38\end{array}$
-Referring to Instruction 12-4,the managers of the brokerage firm wanted to test the hypothesis that the number of new customers brought in had a positive impact on the amount of sales generated.At a level of significance of 0.01,the null hypothesis should be ________ (accepted or rejected).

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Definitions:

Overhead Application Rate

A calculation used to allocate indirect costs to specific production activities or departments based on a predetermined formula.

Machine Hours

A measure of the amount of time a machine is used during a specified period, often used as a basis for allocating machine-related costs to products.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before a period begins based on estimated overhead costs and activity levels.

Manufacturing Overhead Application Rate

A rate used to allocate manufacturing overhead costs to products based on a predetermined activity base, such as labor hours or machine hours.