3 5 Suppose That In The Population The Annual Salary Yi Of The Ceo Measured In Million Dollars Is Related To The Ann 1 (61.08 KiB) Viewed 36 times
[3-5] Suppose that in the population the annual salary (yi) of the CEO measured in million dollars is related to the annual sales of the company (Xi) measured in million dollars according to the following regression model: Yi = 5 + 0.1x; + &i, where &; ~ N(0,92) 3. What is the standard deviation of CEO salaries in million dollars for CEOs of firms with annual sales of five million dollars? (a) 9 (b) 10 (c) 19 (d) 13.45 4. What is the expected difference in million dollars between the salary of CEO of a firm with five million dollars in annual sales and the CEO of a firm with annual sales of eight million dollars? (a) -0.3 (b)-0.5 (c) 8 (d) 5
5. What is the probability that the salary of CEO is greater than 7 million dollars if the sales is 10 million dollars? (a) 0.044 (b) 0.11 (c) 0.38 (d) 0.45
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