After Plotting a Regression (Market Line),you Determine That the Slope

question 25

Multiple Choice

After plotting a regression (market line) ,you determine that the slope is very steep.What possible conclusion can you make from observing the slope of the regression line?

• A) The correlation coefficient is approaching -1 (negative one).
• B) There is too much spread in job evaluation points between low-value and high-value jobs.
• C) There is not sufficient spread in job evaluation points between low-value and high-value jobs.
• D) Lower-value jobs appear to be compensated above market rates.

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Definitions:

Worthless Securities

Financial instruments that have lost all monetary value, often resulting in a total loss for the holder.

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights to it free from many defenses.

Restrictive Indorsement

A signature on a negotiable instrument, such as a check, that limits how the instrument can be used.

Depositary Banks

Banks that hold securities (such as shares or bonds) in custody for other parties, facilitating securities trades and dividend payments.