Exhibit 15-7

question 1

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 since the interval contains 0.
• B)At the 5% significance level,do not reject H₀ since the interval contains 0.
• C)At the 5% significance level,reject H₀ since the interval does not contain 0.
• D)At the 5% significance level,do not reject H₀ since the interval does not contain 0.

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Paid-in Capital

Funds that are contributed to a corporation by investors in exchange for the corporation's stock, representing the funds raised by the company from equity, not from ongoing operations.

Common Stock Dividends Distributable

A liability account representing dividends declared by a company but not yet distributed to common stockholders.

Stock Split

A corporate action to increase the number of outstanding shares by dividing each share, which typically makes the stock more affordable.