A Prediction Equation for Starting Salaries (In $1,000s)and SAT Scores

question 2

Multiple Choice

A prediction equation for starting salaries (in $1,000s) and SAT scores was performed using simple linear regression.In the regression printout shown below, what can be said about the level of significance for the overall model? SUMMARY OUTPUT
ANOVA

• A)SAT is not a good predictor for starting salary.
• B)The significance level for the intercept indicates the model is not valid.
• C)The significance level for SAT indicates the slope is equal to zero.
• D)The significance level for SAT indicates the slope is not equal to zero.

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Definitions:

Net Income

The total profit of a company after all revenues and gains are accounted for and all expenses and losses are deducted.

Direct Expense

Costs that can be directly traced to a specific product, service, or department, and is a key factor in the cost of goods sold.

Indirect Expense

Costs that are not directly attributable to a specific cost object, such as a product or service.

Insurance

A contractual arrangement that provides financial protection or reimbursement against losses from an insurance company.