Use Indicator (Dummy) Variables in Multiple Regression A) That the Annual Average Bonus Is $605

Multiple Choice

Use indicator (dummy) variables in multiple regression.
-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. The correct
Interpretation of the regression coefficient of Union is $$\begin{array}{l}\text { Dependent Variable is Average Annual Bonus }\\\\\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\\text { Constant } & 347.9 & 872.2 & 0.40 & 0.693 \\\text { Employees } & 0.6547 & 0.1105 & 5.92 & 0.000 \\\text { Union } & 1259.5 & 605.8 & 2.08 & 0.047\end{array}\end{array}$$

A) that the annual average bonus is $605.80 less, on average, for unionized companies compared to non-unionized companies of the same size (same number of employees) .
B) that the annual average bonus is $605.80 more, on average, for unionized companies compared to non-unionized companies of the same size (same number of employees) .
C) that the annual average bonus is $1259.50 less, on average, for unionized companies compared to non-unionized companies of the same size (same number of employees) .
D) that the annual average bonus is $1259.50 more, on average, for unionized companies compared to non-unionized companies of the same size (same number of employees) .
E) that the annual average bonus is $208 more, on average, for unionized companies