Use indicator (dummy) variables in multiple regression.
-A sample of firms was selected from the high tech industry (Industry = 1) and the
Financial services sector (Industry = 0). Data were collected on the following variables:
Turnover rate, job growth, number of employees, and innovative index (higher scores
Indicate a more innovative and creative organizational culture). What does the scatterplot
Below suggest about developing a multiple regression model to predict turnover rate?
A) Using Job Growth as an indicator variable in this model is appropriate.
B) Using the interaction term Job Growth*Industry in the model is appropriate.
C) Using Industry as an indicator variable in this model is appropriate.
D) Job Growth should not be included in the model as a variable.
E) None of the above.

Question

Use indicator (dummy) variables in multiple regression.
-A sample of firms was selected from the high tech industry (Industry = 1) and the
Financial services sector (Industry = 0). Data were collected on the following variables:
Turnover rate, job growth, number of employees, and innovative index (higher scores
Indicate a more innovative and creative organizational culture). What does the scatterplot
Below suggest about developing a multiple regression model to predict turnover rate? 
A) Using Job Growth as an indicator variable in this model is appropriate. 
B) Using the interaction term Job Growth*Industry in the model is appropriate. 
C) Using Industry as an indicator variable in this model is appropriate. 
D) Job Growth should not be included in the model as a variable. 
E) None of the above.

Quizplus · Accepted Answer

The Answer of Use indicator (dummy) variables in multiple regression.
-A sample of firms was selected from the high tech industry (Industry = 1) and the
Financial services sector (Industry = 0). Data were collected on the following variables:
Turnover rate, job growth, number of employees, and innovative index (higher scores
Indicate a more innovative and creative organizational culture). What does the scatterplot
Below suggest about developing a multiple regression model to predict turnover rate? 
A) Using Job Growth as an indicator variable in this model is appropriate. 
B) Using the interaction term Job Growth*Industry in the model is appropriate. 
C) Using Industry as an indicator variable in this model is appropriate. 
D) Job Growth should not be included in the model as a variable. 
E) None of the above.

Use Indicator (Dummy) Variables in Multiple Regression