To encourage performance,loyalty,and continuing education,the human resources department at a large company wants to develop a regression-based compensation model for mid-level managers based on three variables: business unit-profitability in $1,000s (Profit),years with company (Years),and dummy variable (Grad),graduate degree in relevant field.Data have been collected for 36 managers.The sample regression equation is = - 13,264.3 + 14.13Profit + 1,868.53Years + 45,121.94Grad - 0.1539Profit × Grad - 198.34Years × Grad.Which of the following is the difference in predicted compensations for two managers,one having graduate degree,the other one not,both having 10 years with the company,and having the same business-unit profit of $3,000,000?
A) $34,456.51
B) $38,980.72
C) $41,235.52
D) $47,566.51

Question

To encourage performance,loyalty,and continuing education,the human resources department at a large company wants to develop a regression-based compensation model for mid-level managers based on three variables: business unit-profitability in $1,000s (Profit),years with company (Years),and dummy variable (Grad),graduate degree in relevant field.Data have been collected for 36 managers.The sample regression equation is  = - 13,264.3 + 14.13Profit + 1,868.53Years + 45,121.94Grad - 0.1539Profit × Grad - 198.34Years × Grad.Which of the following is the difference in predicted compensations for two managers,one having graduate degree,the other one not,both having 10 years with the company,and having the same business-unit profit of $3,000,000?
A) $34,456.51 
B) $38,980.72 
C) $41,235.52 
D) $47,566.51

Quizplus · Accepted Answer

The Answer of To encourage performance,loyalty,and continuing education,the human resources department at a large company wants to develop a regression-based compensation model for mid-level managers based on three variables: business unit-profitability in $1,000s (Profit),years with company (Years),and dummy variable (Grad),graduate degree in relevant field.Data have been collected for 36 managers.The sample regression equation is  = - 13,264.3 + 14.13Profit + 1,868.53Years + 45,121.94Grad - 0.1539Profit × Grad - 198.34Years × Grad.Which of the following is the difference in predicted compensations for two managers,one having graduate degree,the other one not,both having 10 years with the company,and having the same business-unit profit of $3,000,000?
A) $34,456.51 
B) $38,980.72 
C) $41,235.52 
D) $47,566.51

To Encourage Performance,loyalty,and Continuing Education,the Human Resources Department at a Large