A Researcher Analyzes the Factors That May Influence Amusement Park

question 79

Multiple Choice

A researcher analyzes the factors that may influence amusement park attendance.She estimates the following model: Attendance = β₀ + β₁ Price + β₂ Temperature + β₃ Rides + ε,whereAttendance is the daily attendance (in 1,000s) ,Price is the gate price (in $) ,Temperature is the average daily temperature (in ^oF) ,and Rides is the number of rides at the amusement park.A portion of the regression results is shown in the accompanying table. When testing whether Rides is significant at the 1% significance level,she ____________________________________________________________.

• A) rejects H₀:β₃ = 0,and concludes that Rides is significant
• B) does not reject H₀:β₃ = 0,and concludes that Rides is significant
• C) rejects H₀:β₃ = 0,and concludes that Rides is not significant
• D) does not reject H₀:β₃ = 0,and concludes that Rides is not significant

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Definitions:

Common Stock Dividends Distributable

A portion of earnings allocated by a company to be distributed to holders of its common stock, recognized as a liability until paid out.

Paid-in Capital

Equity capital that is contributed to a corporation by its shareholders, in addition to the prescribed par value, representing funds received from investors.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that, if omitted, accumulate and must be paid before dividends can be paid to common shareholders.

Annual Dividend

The total amount of dividend payments made to shareholders in a year.