Multiple Choice
Use indicator (dummy) variables in multiple regression.
-A sample of firms was selected from the high tech industry (Industry = 1) and the
Financial services sector (Industry = 0) . Data were collected on the following variables:
Turnover rate, job growth, number of employees, and innovative index (higher scores
Indicate a more innovative and creative organizational culture) . What does the scatterplot
Below suggest about developing a multiple regression model to predict turnover rate?
A) Using Job Growth as an indicator variable in this model is appropriate.
B) Using the interaction term Job Growth*Industry in the model is appropriate.
C) Using Industry as an indicator variable in this model is appropriate.
D) Job Growth 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
Q9: Adjust for different slopes using interaction terms
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