Applicants for a Particular Job, Which Involves Extensive Travel in Spanish

question 50

Essay

Applicants for a particular job, which involves extensive travel in Spanish speaking countries must take a
proficiency test in Spanish. The sample data below were obtained in a study of the relationship between the
numbers of years applicants have studied Spanish (x) and their score on the test (y). $$\begin{array} { | l r r r r r r r r r r | } \hline \hline x & 3 & 4 & 4 & 2 & 5 & 3 & 4 & 5 & 3 & 2 \\\hline y & 57 & 78 & 72 & 58 & 89 & 63 & 73 & 84 & 75 & 48 \\\hline\end{array}$$ The regression equation $\hat { y } = 31.55 + 10.90 x$ , was obtained. Construct a residual plot for the data.

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Definitions:

Best Efforts Basis

A best efforts basis is an agreement where an underwriter commits to sell as much of a new securities offering as possible, but not to buy any unsold securities.

Public Offering Price

The price at which new issues of stocks or bonds are offered to the public by an issuer for the first time.

Spread

The difference between two prices or rates, such as the bid and ask price of a stock, or the interest rates of two different investments.

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, including both interest payments and capital gains.