Consider the following to answer the question(s) below:
A sample of 30 companies was randomly selected for a study investigating what factors affect the size of company bonuses. Data were collected on the number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no). The following multiple regression model was fit to the data.
-The estimated regression model is
A) Average Annual Bonus = 347.9 + 0.6547 Employees + 1259.5 Union
B) Average Annual Bonus = 872.2 + 0.1105 Employees + 605.8 Union
C) Average Annual Bonus = 0.40 + 5.92 Employees + 2.08 Union
D) Average Annual Bonus = 0.6547 Employees + 1259.5 Union
E) Average Annual Bonus = 347.9 + 872.2 Employees + 0.40 Union .

Question

Consider the following to answer the question(s) below:
A sample of 30 companies was randomly selected for a study investigating what factors affect the size of company bonuses. Data were collected on the number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no). The following multiple regression model was fit to the data. 
-The estimated regression model is
A) Average Annual Bonus = 347.9 + 0.6547 Employees + 1259.5 Union 
B) Average Annual Bonus = 872.2 + 0.1105 Employees + 605.8 Union 
C) Average Annual Bonus = 0.40 + 5.92 Employees + 2.08 Union 
D) Average Annual Bonus = 0.6547 Employees + 1259.5 Union 
E) Average Annual Bonus = 347.9 + 872.2 Employees + 0.40 Union .

Quizplus · Accepted Answer

The correct answer is A because it is the only equation that includes all three variables (Average Annual Bonus, Employees, and Union) and their respective coefficients.

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