Using the following regression analysis of the relationship between the size of cash bonuses and pay scale, find the correlation between average annual cash bonus and
Average annual pay? Regression Analysis: Cash Bonus versus Pay
The regression equation is: Cash Bonus $= - 4877 + 0.245$ Pay
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & T & \text { P } \ \text { Constant } & - 4877 & 9106 & - 0.54 & 0.599 \ \text { Pay } & 0.2453 & 0.1079 & 2.27 & 0.036 \end{array}$
$$\mathrm { S } = 13188.6 \quad \mathrm { R } - \mathrm { Sq } = 22.3 \%$$
A) -0.540
B) -0.223
C) 0.108
D) 0.472
E) Cannot be determined from the information given.

Question

Quizplus · Accepted Answer

The correlation coefficient (r) can be found by taking the square root of the R-squared value, which is given as 22.3%. So,
$r=\sqrt{0.223}=0.472$
Therefore, the correlation between average annual cash bonus and average annual pay is 0.472.

Using the Following Regression Analysis of the Relationship Between the Size