Twenty-One Executives in a Large Corporation Were Randomly Selected for a Study

question 62

Short Answer

Twenty-one executives in a large corporation were randomly selected for a study in which several factors were examined to determine their effect on annual salary (expressed in $000's). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to and the level of their responsibility. A regression analysis was performed using a popular spreadsheet program with the following regression output:

-What is the effect on salary of an increase in age of two years if other variables are held constant?____________

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Definitions:

Fixed Manufacturing Overhead

Expenses associated with manufacturing that do not vary with the level of production, including salaries of managers and depreciation of equipment.

Direct Labor Costs

Expenses directly tied to the work of employees manufacturing a product or delivering a service.

Work in Process

A category of inventory representing items currently being manufactured but not yet completed.

Direct Labor

The wages and other costs for labor directly involved in the production of goods or services, excluding indirect labor costs.