Consider the Following to Answer the Question(s) Below

question 23

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.

-Based on the estimated regression line, the cash bonus for an executive at Johnson Financial earning $82, 613 a year would be

• A) $11,863
• B) $16,844
• C) $27,682
• D) $4,958
• E) $15,819

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Definitions:

Discount Rate

The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Equal Payments

Regular payments that are the same in amount, typically part of a loan or mortgage repayment plan.

Invoice

A document issued by a seller to a buyer, indicating products, quantities, and agreed prices for products or services the seller has provided.

Operating Profit

The revenue made from the primary functions of a business, without accounting for interest and tax deductions.