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:

Data

Information collected for reference or analysis.

Inference

The process of using data analysis to deduce properties of an underlying distribution of probability; drawing conclusions about populations based on sample data.

Optimization Models

Mathematical models that are designed to find the best possible solution or outcome from a set of parameters or constraints.

Prescriptive Analytics

The set of analytical techniques that yield a best course of action.