In Order to Examine If There Is a Relationship Between $= - 4877 + 0.245$

Multiple Choice

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. Which of the following statement is true about the
Correlation between average annual cash bonus and average annual pay using
? = 0.05?
Regression Analysis: Cash Bonus versus Pay The regression equation is
Cash Bonus $= - 4877 + 0.245$ Pay

$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & - 4877 & 9106 & - 0.54 & 0.599 \\ \text { Pay } & 0.2453 & 0.1079 & 2.27 & 0.036 \end{array}$

$S = 13188.6 \quad \mathrm { R } - \mathrm { Sq } = 22.3 \%$

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) Cannot be determined from the information given.