Use the Following to Answer the Question(s) Below

question 6

Multiple Choice

Use the following to answer the question(s) below.
In order to examine if there is a relationship between the size of cash bonuses and pay scale, data were obtained on the average annual cash bonus and the average annual pay for a sample of 20 companies. Below is the regression analysis output with annual cash bonus as the dependent variable.
-What is the correlation between average annual cash bonus and average annual pay?

• A) -0.223
• B) 0.472
• C) 0.108
• D) -0.540
• E) 0.245

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Definitions:

Demand Function

A mathematical equation that describes the relationship between the quantity of a good that consumers are willing and able to purchase and its price.

Supply Function

A mathematical representation showing the amount of goods that producers are willing and able to sell at different prices, graphically depicted as a curve.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, primarily to keep it affordable for consumers.

Price

The anticipated financial cost, needed, or offered for a particular item or service.