Instruction 12-9
It Is Believed That,the Average Numbers of Hours

question 158

Multiple Choice

Instruction 12-9
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 Microsoft 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.
$\begin{array}{|l|r|}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.8857 \\\hline \text { R Square } & 0.7845 \\\hline \text { Adjusted R Square } & 0.7801 \\\hline \text { Standard Error } & 1.3704 \\\hline \text { Observations } & 51 \\\hline\end{array}$
ANOVA
$\begin{array}{|l|r|r|r|r|r} & d f & \text { SS } & {M S} & F & \text { Significance } F \\\hline \text { Regression } & 1 & 335.0472 & 335.0473 & 178.3859 & \\\hline \text { Residual } & & & 1.8782 & & \\\hline \text { Total } & 50 & 427.0798 & & &\end{array}$

$\begin{array}{l|r|r|r|r|r|r} & \text { Coefficients } & \begin{array}{c}\text { Standard } \\\text { Error }\end{array} & \text { t Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -1.8940 & 0.4018 & -4.7134 & 2.051 \mathrm{E}-05 & -2.7015 & -1.0865 \\\hline \text { Hours } & 0.9795 & 0.0733 & 13.3561 & 5.944 \mathrm{E}-18 & 0.8321 & 1.1269\end{array}$ Note: 2.051E-05 = 2.051 * 10^-0.5 and 5.944E-18 = 5.944 * 10^-18.
-Referring to Instruction 12-9,the value of the measured t test statistic to test whether average SALARY depends linearly on HOURS is

• A)13.3561.
• B)-4.7134.
• C)0.9795.
• D)-1.8940.

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Definitions:

Consolidated Worksheet

A financial statement that combines the accounting records of a parent company and its subsidiaries, showing the financial results of the entire group as a single entity.

General Journal

A basic accounting record where all day-to-day financial transactions of a company are initially recorded in chronological order.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the appropriate period for an accurate financial statement.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost and dividends are recorded as income.