Multiple Choice
Consider the following to answer the question(s) below:
An alternative multiple regression model is fit to the data on the sample of firms selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0) . The results are shown below.
-What does the scatterplot of these data (shown below) suggest?
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) Using Industry as an indicator variable in this model is definitely not appropriate.
Correct Answer:

Verified
Correct Answer:
Verified
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