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.

---

Definitions:

Savings

Funds that are set aside for future use rather than being spent immediately, often placed in accounts that earn interest.

Consumption

The use of goods and services by households or individuals, typically referring to the final use that directly satisfies human needs or wants.

Disposable Income

Money freed up for households to allocate towards savings and spending after income tax removal.

Induced Consumption

The portion of consumer spending that rises when disposable income rises and falls when disposable income decreases.