Interpret Multiple Regression Output A) the Indicator Variable in the Model Is Not Significant

Multiple Choice

Interpret multiple regression output.
-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 multiple regression output including a plot of residuals versus fitted values
Is shown below. Based on the results shown, which of the following statements is true? Dependent Variable is Average Annual Bonus

$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & - 1241.0 & 982.3 & - 1.26 & 0.218 \\ \text { Employees } & 0.8872 & 0.1318 & 6.73 & 0.000 \\ \text { Union } & 5253 & 1579 & 3.33 & 0.003 \\ \text { Emp*Union } & - 0.05424 & 0.02012 & - 2.70 & 0.012 \end{array}$

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.