SCENARIO 13-2
a Professor of Industrial Relations Believes That an Individual's

question 172

Multiple Choice

SCENARIO 13-2
A professor of industrial relations believes that an individual's wage rate at a factory (Y) depends on his performance rating (X1) and the number of economics courses the employee successfully completed in college (X2) .The professor randomly selects 6 workers and collects the following information: $$\begin{array} { c c r r } \text { Employee } & Y ( \$ ) & \underline { X } _ { 1 } & X _ { 2 } \\1 & 10 & 3 & 0 \\2 & 12 & 1 & 5 \\3 & 15 & 8 & 1 \\4 & 17 & 5 & 8 \\5 & 20 & 7 & 12 \\6 & 25 & 10 & 9\end{array}$$
-Referring to SCENARIO 13-2, suppose an employee had never taken an economics course and managed to score a 5 on his performance rating.What is his estimated expected wage rate?

• A)10.90
• B)12.20
• C)17.23
• D)25.11

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Definitions:

Futures Contracts

Legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Spot Price

The current market price at which a particular asset can be bought or sold for immediate delivery.

Arbitrage Opportunities

Situations where a trader can make a profit from the price difference of a security or commodity in two different markets without risk.

Spot Price

The current market price at which a particular asset, such as a commodity, currency, or security, can be bought or sold for immediate delivery.