A Manager at a Local Bank Analyzed the Relationship Between

question 66

Multiple Choice

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months) , gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical) . The following ANOVA summarizes the regression results: Based on the hypothesis tests for the individual regression coefficients, ____________.

• A)All the regression coefficients are not equal to zero
• B)"Job" is the only significant variable in the model
• C)Only months of service and gender are significantly related to monthly salary
• D)"Service" is the only significant variable in the model

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Definitions:

Accumulate

To accumulate is to gather or collect something over a period of time, often used in financial contexts to describe the building up of interest, investments, or assets.

Compounded Quarterly

A method of calculating interest where the interest earned each quarter is added to the principal, thereby increasing the amount on which subsequent interest is calculated.

Interest Rate

The percentage of a loan amount that is applied as interest for the borrower, usually shown as an annual rate of the remaining loan balance.

Present Value

The present worth of a future amount of money or series of cash flows when a particular return rate is applied.