Instruction 12-10
the Management of a Chain Electronic Store Would

question 148

True/False

Instruction 12-10
The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars)for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results:
$$\begin{array} { | c | c | } \hline \text { Customers } & \text { Sales (Thousands of Dollars) } \\\hline 907 & 11.20 \\\hline 926 & 11.05 \\\hline 713 & 8.21 \\\hline 741 & 9.21 \\\hline 780 & 9.42 \\\hline 698 & 10.08 \\\hline 510 & 6.73 \\\hline 529 & 7.02 \\\hline 460 & 6.12 \\\hline 872 & 9.52 \\\hline 650 & 7.53 \\\hline 603 & 7.25 \\\hline\end{array}$$
-Referring to Instruction 12-10,the value of the F test statistic equals the square of the t test statistic when testing whether the number of customers who make purchases is a good predictor for weekly sales.

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Definitions:

Average Accounting Return

A measure of the profitability of an investment, calculated as the average net income generated by an investment divided by its initial cost.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, essentially the tax rate that applies to each additional dollar of income.

Start-Up Cost

Expenses incurred before a business begins operating, including costs such as legal fees, marketing, equipment purchases, and rent.

Crossover Rate

The point at which two or more projects have the same net present value or rate of return, used in capital budgeting to compare projects.