Consider the Following to Answer the Question(s) Below

question 9

Multiple Choice

Consider the following to answer the question(s) below:
To determine whether the cash bonuses paid by Johnson Financial Group are related to annual pay, data were gathered for 10 account executives who received such bonuses in 2007. The data, scatterplot and summary statistics are shown below.

-The slope of the estimated regression line that relates the response variable (cash bonus) to the predictor variable (annual pay) is

• A) 0.409
• B) -16945
• C) 0.54
• D) 3.45
• E) none of the above

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Definitions:

Mean Absolute Deviation

A measure of variability that quantifies the average of the absolute deviations of each data point from the data set's mean.

Smoothing Constant

A parameter used in exponential smoothing methods to weigh the importance of historical data in forecasting.

Regression Method

A statistical process for estimating the relationships among variables, often used for prediction and forecasting.

MSE

Stands for Mean Squared Error, a measure used to gauge the average of the squares of the errors or deviations; essentially, the average squared difference between estimated values and the actual value.