Question

To determine whether the cash bonus paid by a company is related to annyual pay, data were gathered for 10 loan officers at AMC Bank who received cash bonuses in 2017. The data are shown.

annual pay	bonus
$70,609	$11,225
$58,487	$6,238
$104,561	$14,194
$43,922	$4,188
$82,613	$11,863
$116,250	$13,671
$76,751	$7,758
$68,513	$20,760
$137,000	$55,000
$94,469	$34,368

Draw a scatter plot for this data. Treat the annual pay as the explanatory (x) variable. Include a trend line.

Is there a linear relation between the number of the annual pay and the bonuses? That is, is the correlation statistically significant? (Compare your correlation to Table II.) Be sure you include both the correlation and the value from Table II.

Find the least squares regression line for bonus pay treating the annual pay as the explanatory (x) variable and the bonus as the response variable.

Interpret the slope and intercept, if appropriate.

Predict the bonus of an employee whose pay is $100,000.

Please include an Excel file with your output or copy your Excel output into a Word document.

Answer 1