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.
-At 5% significance level, which of the following statements is true about the correlation between average annual cash bonus and average annual pay?
A) It is not significantly different from zero.
B) It is negative but not significantly different from zero.
C) It is positive and significantly different from zero.
D) It is negative and significantly different from zero.
E) We fail to reject the null hypothesis Hο : ρ = 0.

Question

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. 
-At 5% significance level, which of the following statements is true about the correlation between average annual cash bonus and average annual pay?
A) It is not significantly different from zero. 
B) It is negative but not significantly different from zero. 
C) It is positive and significantly different from zero. 
D) It is negative and significantly different from zero. 
E) We fail to reject the null hypothesis Hο : ρ = 0.

Quizplus · Accepted Answer

The p-value for the coefficient of annual pay is less than 0.05, indicating that it is significantly different from zero. The coefficient is positive, indicating a positive correlation between annual cash bonus and annual pay. Therefore, it is positive and significantly different from zero.

Use the Following to Answer the Question(s) Below