The Manager of a Human Resources Department Wishes to Predict

Multiple Choice

The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee) .A random sample of 50 employees results in the following least-squares regression equation:
= 40,000 + 2,500 x + 1,500 g +1,000 xg.Interpret the value of the coefficient of the interaction term xg.

A) We predict that the growth rate of a male employee's salary will be $1,000 per year higher than that of a female employee.
B) We predict that a man with 0 years of experience will make $1,000 more than a woman with 0 years of experience.
C) We predict that the growth rate of a male employee's salary will be $1,000 per year.
D) We predict that a woman with 0 years of experience will make $1,000 more than a man with 0 years of experience.
E) We predict that the growth rate of a female employee's salary will be $1,000 per year.