Exhibit 14-6

question 4

Multiple Choice

Exhibit 14-6.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 following table summarizes a portion of the regression results: Refer to Exhibit 14-6.How much of the variation in Salary is unexplained by the model?

• A)1%
• B)2%
• C)18.39%
• D)81.61%

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Definitions:

Qualitative Indicators

Qualitative indicators are non-numeric metrics used to assess characteristics or properties that affect the performance and status of a business or project.

Vertical Analysis

A technique for analyzing financial statements where every item in the three primary account categories (assets, liabilities, and equity) on a balance sheet is expressed as a percentage of the overall account.

Ratio

A quantitative relationship between two numbers, showing how many times the first number contains the second or is contained within it.

Earnings Per Share

Earnings per share (EPS) is a financial ratio that divides the net earnings available to common shareholders by the average outstanding shares, indicating how much money shareholders would receive for every share owned.