Use the Following to Answer Questions 5 - 8 - $$\text { Find the value of } R ^ { 2 } \text {. Interpret its meaning in this context. }$$

question 4

Essay

Use the following to answer questions 5 - 8.
To determine whether the cash bonus paid by a company is related to annual pay, data
were gathered for 10 account executives at Johnson Financial Group who received cash
bonuses in 2007. The data, scatterplot, and summary statistics are shown below. $$\begin{array} { | l | l | l | } \hline & \text { ANNUAL PAY } & \text { CASH BONUS } \\\hline & \$ 70609 & \$ 11225 \\\hline & \$ 58487 & \$ 6238 \\\hline & \$ 104561 & \$ 14194 \\\hline & \$ 43922 & \$ 4188 \\\hline & \$ 82613 & \$ 11863 \\\hline & \$ 116250 & \$ 13671 \\\hline & \$ 76751 & \$ 7758 \\\hline & \$ 68513 & \$ 20760 \\\hline & \$ 137000 & \$ 55000 \\\hline & \$ 94469 & \$ 34368 \\\hline & & \\\hline \text { Mean } & \$ 85318 & \$ 17927 \\\hline \text { Standard Deviation } & \$ 28077 & \$ 15618 \\\hline & & \\\hline \text { Correlation } & 0.735 & \\\hline\end{array}$$
- $$\text { Find the value of } R ^ { 2 } \text {. Interpret its meaning in this context. }$$

---

Definitions:

Administrative Reason

A justification or explanation based on the requirements or procedures of management or bureaucracy.

Emergency Needs

Immediate financial requirements that arise unexpectedly, requiring quick access to funds.

Lock Boxes

A cash management service offered by banks involving the collection of payments from a corporation's customers, aiming to reduce the time it takes for companies to receive payments.

Mail Float

The time between when a payment is mailed and when it is received and processed.