TABLE 12-12
The manager of the purchasing department of a large savings and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan application. Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded. Below is the regression output:

Note: 4.3946E-15 is 4.3946 x 10-15.

-Referring to Table 12-12, the p-value of the measured t test statistic to test whether the number of loan applications recorded affects the amount of time is ________.
A) (4.3946E-15)/2
B) 4.3946E-15
C) (0.0030)/2
D) 0.0030

Question

TABLE 12-12
The manager of the purchasing department of a large savings and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan application. Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded. Below is the regression output:
  
Note: 4.3946E-15 is 4.3946 x 10-15.

-Referring to Table 12-12, the p-value of the measured t test statistic to test whether the number of loan applications recorded affects the amount of time is ________.
A) (4.3946E-15)/2 
B) 4.3946E-15 
C) (0.0030)/2 
D) 0.0030

Quizplus · Accepted Answer

The p-value of the measured t test statistic to test whether the number of loan applications recorded affects the amount of time is given in the "P>|t|" column and is equal to 4.3946E-15. Therefore, the answer is B. We do not divide the p-value by 2 because this is a two-tailed test, and we are interested in the possibility of both a positive and negative relationship between the two variables.

TABLE 12-12 The Manager of the Purchasing Department of a Large Savings