A Manager at a Local Bank Analyzed the Relationship Between

question 72

Multiple Choice

A manager at a local bank analyzed the relationship between monthly salary (y, in $) and length of service (x, measured in months) for 30 employees. She estimates the model: Salary = β₀ + β₁Service + ε. The following ANOVA table summarizes a portion of the regression results. Which of the following is the monthly salary of an employee that has worked for 48 months at the bank?

• A) $441
• B) $785
• C) $1,050
• D) $1,226

---

Definitions:

Transfer Price

The price at which goods and services are sold between divisions or branches within the same company.

Variable Cost

Variable Cost refers to expenses that change in proportion to the business activity level or volume of production.

Residual Income

The amount of income that exceeds the minimum rate of return expected from investments or operations.

Invested Assets

Resources or capital that has been allocated by individuals or entities into financial instruments or projects expecting future returns.