Data Were Collected on the Number of Employees and Whether

Multiple Choice

Data were collected on the number of employees and whether or not the employees were unionized (1 = yes, 0 = no) for a sample of companies to investigate factors that affect the size of bonuses.Based on the results shown, which of the following statements is true?

A) The indicator variable in the model is not significant.
B) The interaction term in the model is not significant.
C) The indicator variable in the model is significant.
D) The interaction term should be dropped from the model.
E) None of the above.