Consider the Following to Answer the Question(s) Below

question 32

Essay

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.
Note: In answers to problems 2, 4, and 5 we will be using regression equation coefficients received by computer software. If we apply textbook formulae, the value of intercept will be a little bit different.
-Estimate the linear regression model that relates the response variable (Cash Bonus) to the predictor variable (Annual Pay).
a. Find the slope of the regression line.
b. Find the intercept of the regression line.
c. Write the equation of the linear model.

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Definitions:

Comparative Income Statement

A financial statement that presents the revenues, expenses, and net income for multiple periods side by side for comparative purposes.

Sales

Transactions involving the exchange of goods or services for money or its equivalent.

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Current Ratio

A liquidity measure indicating a company’s ability to meet short-term obligations with its short-term assets.