Use the Following Information for Following Questions

question 20

Essay

Use the following information for following questions .
Suppose data were recorded for 100 employees of a large company that included annual salaries
and the number of years the employee has been in their current position. The mean annual salary
was $58,000 with a standard deviation of 12,500. The mean number of years in the current
position is 10 with a standard deviation of 3. The correlation coefficient between the two
variables is approximately 0.93.
-If an employee earns an annual salary of $85,000, approximately how long has she held her current position at the company? Round your answer to the nearest year.

---

Definitions:

Budget Line

A graphical representation showing the combination of two goods that a consumer can afford given their income and the prices of the goods.

Going Prices

Going prices refer to the current rates or charges for goods and services in a market.

Utility Function

A mathematical representation of how different quantities of goods or services can provide varying levels of satisfaction or utility to an individual.

Labor Income

Earnings obtained from employment, including wages, salaries, and benefits.