The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee.)A random sample of 50 employees results in the following least-squares regression equation: $\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg }$ What is the least-squares regression line for predicting the salary of male employees?
A) $\text { Salary }$ = 41,500 + 3,500x
B) $\text { Salary }$ = 40,000 + 3,500x
C) $\text { Salary }$ = 40,000 + 2,500x
D) $\text { Salary }$ = 41,500 + 1,500g
E) $\text { Salary }$ = 40,000 + 4,000x

Question

Quizplus · Accepted Answer

For male employees, $g = 1$, so substituting $g = 1$ into the equation gives: $\text{Salary} = 40,000 + 2,500x + 1,500(1) + 1,000x(1) = 41,500 + 3,500x$.

The Manager of a Human Resources Department Wishes to Predict Salary =40,000+2,500x+1,500 g+1,000xg\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg } Salary =40,000+2,500x+1,500 g+1,000xg

The Manager of a Human Resources Department Wishes to Predict $\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg }$