Exhibit 15-7

question 89

Multiple Choice

Exhibit 15-7.A manager at a local bank analyzed the relationship between monthly salary (y,in $) and length of service (x,measured in months) for 30 employees.She estimates .The following table summarizes a portion of the regression results: Refer to Exhibit 15-7.Using the 95% confidence interval,what is the conclusion to the following hypothesis test: ?

• A)At the 5% significance level,reject H₀ and conclude that Service is significant.
• B)At the 5% significance level,do not reject H₀ and conclude that Service is significant.
• C)At the 5% significance level,reject H₀ and conclude that Service is not significant.
• D)At the 5% significance level,do not reject H₀ and conclude that Service is not significant.

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Definitions:

Debt Securities

Notes and bond investments that provide interest revenue over a fixed maturity.

Equity Securities

The common and preferred stock of a firm.

Market Price

The price at which an asset or service is traded in the open market.

Short-term Profits

Refers to the earnings generated by a company over a short period, typically within a year.