Applicants for a Particular Job,which Involves Extensive Travel in Spanish-Speaking

question 48

Essay

Applicants for a particular job,which involves extensive travel in Spanish-speaking countries,must take a proficiency test in Spanish.The sample data below were obtained in a study of the relationship between the numbers of years applicants have studied Spanish and their score on the test. $$\begin{array} { c | c } \begin{array} { c } \text { Number } \\\text { of years }\end{array} & \text { Score } \\\hline 3 & 57 \\4 & 78 \\4 & 72 \\2 & 58 \\5 & 89 \\3 & 63 \\4 & 73 \\5 & 84 \\3 & 75 \\2 & 48\end{array}$$ Using a 1% level of significance,do the data provide sufficient evidence to conclude that the slope of the regression line is not 0 and hence that number of years of study is useful as a predictor of score on the test?

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Definitions:

Capital Investments

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to increase its long-term revenue.

Discounting Techniques

Methods used in finance to determine the present value of future cash flows or income.

Interest Rate

The proportion of an amount of money that is charged for borrowing or using it, usually represented as a yearly percentage.

Compounded Annually

Interest calculation method where the interest is calculated on the initial principal, which also includes all the accumulated interest from the previous periods on a loan or deposit.