Twenty-One Executives in a Large Corporation Were Randomly Selected for a Study

question 33

Short Answer

Twenty-one executives in a large corporation were randomly selected for a study to determine the effect of several factors on annual salary (expressed in $000's). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to and the level of their responsibility. A regression analysis was performed using a popular spreadsheet program with the following regression output: Write out the multiple regression equation. _______________________

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Definitions:

Return Rate

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Intercept Point

The exact point on a graph where two lines meet, often used in statistical analysis and economics.

Unsystematic Risk

The risk of price change in a specific security due to factors unique to that security, not affecting the market as a whole.

Unique Risks

The specific uncertainties or dangers associated with a particular investment or company, which are not common to all investments.