Data from Established Manufacturing Companies in Morocco Shows That the Number

question 5

Multiple Choice

Data from established manufacturing companies in Morocco shows that the number of years' experience a sales person has is correlated with their average yearly sales. The correlation coefficient ( r) is 0.62. Calculate, to 1 decimal place, the percentage of variation in sales that is accounted for by experience.

• A) 62.0%
• B) 61.6%
• C) 45.3%
• D) 38.4%

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Definitions:

Interest Rate

The fraction of a loan incurred as interest by the borrower, often represented as an annual percentage of the remaining loan balance.

Savings

The portion of income not spent on current consumption, typically set aside for future use or investment.

Utility Function

A mathematical representation of how a series of choices align with an individual's preferences, showing satisfaction levels among various sets of goods and services.

Consumption

The consumption of products and services by families.