The Following Estimated Regression Equation Was Developed Relating Average Yearly

question 35

Multiple Choice

The following estimated regression equation was developed relating average yearly income (y in $1000s) of 50 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) : = 35 + .7x₁ + 3x₂
Also provided are SST = 1400 and SSE = 400.The estimated income (in $) of a 40-year-old male is

• A) $63,000.
• B) $21.
• C) $120,000.
• D) $63.

---

Definitions:

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Division of Labor

The practice of breaking down work into specialized tasks, each carried out by different workers or groups of workers.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

HR Unit

A division within a company focused on employee recruitment, management, and company policies adherence.