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.
-The correct interpretation of the regression coefficient of Union is
A) that the annual average bonus is $605.80 less for unionized companies compared to non-unionized companies of the same size (same number of employees) .
B) that the annual average bonus is $605.80 more for unionized companies compared to non-unionized companies of the same size (same number of employees) .
C) that the annual average bonus is $1259.50 less for unionized companies compared to non-unionized companies of the same size (same number of employees) .
D) that the annual average bonus is $1259.50 more for unionized companies compared to non-unionized companies of the same size (same number of employees) .
E) that the annual average bonus is $208 more for unionized companies compared to non-unionized companies of the same size (same number of employees) .
Correct Answer:
Verified
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