A Sociologist Wishes to Study the Relationship Between Happiness and Age.He

question 46

Multiple Choice

A sociologist wishes to study the relationship between happiness and age.He interviews 24 individuals and collects data on age and happiness,measured on a scale from 0 to 100.He estimates the following model: Happiness = β₀ + β₁Age + ε.The following table summarizes a portion of the regression results. At the 1% significance level,which of the following is correct?

• A) Do not reject the null hypothesis.At 1% significance level,we conclude that Age is not significant in explaining Happiness.
• B) Do not reject the null hypothesis.At 1% significance level,we conclude that Age is significant in explaining Happiness.
• C) Reject the null hypothesis.At 1% significance level,we conclude that Age is significant in explaining Happiness.
• D) Reject the null hypothesis.At 1% significance level,we conclude that Age is not significant in explaining Happiness.

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Definitions:

Comprehensive Income

An overall measure of all changes in equity from non-owner sources, capturing both realized and unrealized gains and losses.

Cost-Cutting Project

Initiatives or plans implemented by a business to reduce its expenses and increase efficiency, aiming to improve overall profitability.

Erosion

In finance, the gradual reduction of the value of an asset or earnings, often due to external factors or new projects cannibalizing existing project revenues.

Incremental Cash Flows

The additional cash flows a business expects to generate from taking on a new project or making an investment decision.