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.

-The intercept of the estimated regression line that relates the response variable (Cash Bonus) to the predictor variable (Annual Pay) is
A) 0.409.
B) -16,945.
C) 0.54.
D) 3.45.
E) 1.32.

Question

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.
  
-The intercept of the estimated regression line that relates the response variable (Cash Bonus) to the predictor variable (Annual Pay) is
A) 0.409. 
B) -16,945. 
C) 0.54. 
D) 3.45. 
E) 1.32.

Quizplus · Accepted Answer

The intercept of the estimated regression line is the value of Y (the cash bonus) when X (the annual pay) is equal to zero. According to the summary statistics given, the intercept is -16,945.

Consider the Following to Answer the Question(s) Below