A multiple regression model was fit to data investigating what factors affect the size of company bonuses including number of employees and whether or not the employees were unionized (1 = yes, 0 = no).The regression coefficient of Union is 1259.5.The correct interpretation of this value is that, for unionized companies compared to non-unionized companies of the same size (same number of employees), on average the annual average bonus is ________________________ .
A)$605.80 less
B)$605.80 more
C)$1259.50 less
D)$1259.50 more
E)$208 more

Question

Quizplus · Accepted Answer

The regression coefficient of 1259.5 for Union indicates that, holding all other variables constant (in this case, the number of employees), the average annual bonus in unionized companies is $1259.50 more than in non-unionized companies.

A Multiple Regression Model Was Fit to Data Investigating What