Consider the Following to Answer the Question(s) Below

question 12

Multiple Choice

Consider the following to answer the question(s) below:
A study was recently performed by the Canada Revenue Agency to determine how much tip income waiters and waitresses would make based on the size of the bill at the table. A random sample of bills and resulting tips was collected. These data and regression results are as follows:

-In testing the null hypothesis that the correlation coefficient, ρ, equals 0, the correct value of the test statistic is

• A) 7.5602.
• B) 5.1702.
• C) 6.7452.
• D) 2.3156.
• E) 3.4891.

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Definitions:

Return

A document containing details about an individual's or entity's income, deductions, and tax liabilities filed with the tax authorities.

Basis

The initial value of an asset for tax purposes, used to calculate depreciation, amortization, and determines the gain or loss on the asset's sale.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's assets and earnings.

Fiscal Year-End

The last day of a company's accounting period, which is used for financial reporting and tax purposes, and can vary between organizations.