The Data Referred to in This Question Were Collected on 41

question 37

Multiple Choice

The data referred to in this question were collected on 41 employees of a large company.The company is trying to predict the current salary of its employees from their starting salary (both expressed in thousands of dollars) .The SPSS regression output is given below as well as some summary measures: John Doe works for this company.He started with a salary of $15,300.Predict his current salary with a 90% confidence interval.Express the interval in the appropriate units.

• A)($15,683;$45,537)
• B)($18,204;$43,015)
• C)($28,580;$32,640)
• D)($31,516;$32,885)

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Definitions:

Valuation Allowance

A reserve set aside against deferred tax assets due to uncertainty regarding their realization in the future.

Fair Value Adjustments

Fair value adjustments are accounting practices to revise the book value of an asset or liability to its current market value.

Trading Security

A financial asset that a company holds primarily for the purpose of selling it in the short term to profit from price fluctuations.

Fair Value

The estimated market value of an asset or liability, based on current market conditions.