Consider the Following to Answer the Question(s) Below

Multiple Choice

Consider the following to answer the question(s) below:
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.
-What does the scatterplot of these data (shown below) suggest?

A) Using the interaction term Employees×Union rather than the indicator variable Union in the model might be more appropriate.
B) The intersection of the line confirms that using Union as an indicator variable in this model is appropriate.
C) The intersection of the line suggests that Union should not be included in the model as a variable.
D) The intersection of the line suggests that Employees should not be included in the model as a variable.
E) Using the interaction term Employees×Union in the model is definitely inappropriate.