Multiple Choice
Adjust for different slopes using interaction terms 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) . What does the scatterplot of these data (shown below) suggest?
A) Using Union as an indicator variable in this model is appropriate.
B) Using the interaction term Employees*Union in the model is appropriate.
C) Union should not be included in the model as a variable.
D) Employees should not be included in the model as a variable.
E) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: Interpret multiple regression output.<br>-A sample of
Q4: Use indicator (dummy) variables in multiple
Q5: Adjust for different slopes using interaction
Q6: Adjust for different slopes using interaction
Q7: Interpret output from automatic multiple regression
Q8: Use indicator (dummy) variables in multiple regression.<br>-A
Q10: Apply principles of the multiple regression model
Q11: Check for collinearity among predictor variables
Q12: Use indicator (dummy) variables in multiple
Q13: Check for collinearity among predictor variables