It Is Thought That There Are a Variety of Factors

question 104

Multiple Choice

It is thought that there are a variety of factors that affect a teacher's salary. Using the following printout and sample data, determine whether the holding of a PhD degree is a significant variable when tested at the 1% level of significance. X₁ is years of teaching experience, X₂ is principal's rating and x₃ is the presence of a PhD or not.

• A) Since the p-value is less than the level of significance, the null hypothesis is rejected, and so the holding of a PhD should be included in the analysis.
• B) Since the p-value is less than the level of significance, the null hypothesis is accepted, and so the PhD should not be included in the analysis.
• C) Since the p-value is more than the level of significance, the null hypothesis is accepted, and so the PhD should not be included in the analysis.
• D) Since the p-value is more than the level of significance, the null hypothesis is rejected, and so the PhD should be included in the analysis.

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Definitions:

Uncollectible Receivables

Money owed to a company that is unlikely to be paid by the debtor, leading to its classification as a bad debt.

Doubtful Accounts Expense

An estimated expense recognized in the accounting period for accounts receivable that may not be collectible, also known as a provision for bad debts.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which does not necessarily coincide with the calendar year.

Direct Write-Off Method

An accounting approach where uncollectible debts are written off directly against income at the time they are deemed nonrecoverable.