Using the Following Regression Analysis of the Relationship Between the Size

question 2

Multiple Choice

Using the following regression analysis of the relationship between the size of cash bonuses and pay scale, find the correlation between average annual cash bonus and
Average annual pay? Regression Analysis: Cash Bonus versus Pay
The regression equation is: Cash Bonus $= - 4877 + 0.245$ Pay
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & T & \text { P } \\ \text { Constant } & - 4877 & 9106 & - 0.54 & 0.599 \\ \text { Pay } & 0.2453 & 0.1079 & 2.27 & 0.036 \end{array}$
$$\mathrm { S } = 13188.6 \quad \mathrm { R } - \mathrm { Sq } = 22.3 \%$$

• A) -0.540
• B) -0.223
• C) 0.108
• D) 0.472
• E) Cannot be determined from the information given.

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Definitions:

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Installment Accounts Receivable

Amounts owed by customers for purchases made on credit that are to be paid in regular, periodic installments.

Non-current Asset

An asset that is not expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Promissory Note

A written promise to pay a specified amount of money to a certain entity on demand or at a fixed or determinable future time.