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.
-Which of the following statements is not true at α = 0.05?
A) The multiple regression model is overall significant in explaining the size of company bonuses.
B) The number of employees at the company is a significant variable in explaining the size of company bonuses.
C) Whether or not the employees are unionized is a significant variable in explaining the size of company bonuses.
D) The regression model accounts for 62.4% of the variation in average annual bonus.
E) The regression model only accounts for 59.6% of the variation in average annual bonus because Employees is not significant variable.

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. 
-Which of the following statements is not true at α = 0.05?
A) The multiple regression model is overall significant in explaining the size of company bonuses. 
B) The number of employees at the company is a significant variable in explaining the size of company bonuses. 
C) Whether or not the employees are unionized is a significant variable in explaining the size of company bonuses. 
D) The regression model accounts for 62.4% of the variation in average annual bonus. 
E) The regression model only accounts for 59.6% of the variation in average annual bonus because Employees is not significant variable.

Quizplus · Accepted Answer

The statement "The regression model only accounts for 59.6% of the variation in average annual bonus because Employees is not significant variable" is not true. The regression model accounts for 62.4% of the variation in average annual bonus, so the number of employees variable is significant in explaining the size of company bonuses.

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