A Multiple Regression Model Was Fit to Data Investigating What

question 2

Multiple Choice

A multiple regression model was fit to data investigating what factors affect the size of company bonuses including number of employees and whether or not the employees were unionized (1 = yes, 0 = no) .The regression coefficient of Union is 1259.5.The correct interpretation of this value is that, for unionized companies compared to non-unionized companies of the same size (same number of employees) , on average the annual average bonus is ________________________ .

• A)$605.80 less
• B)$605.80 more
• C)$1259.50 less
• D)$1259.50 more
• E)$208 more

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Definitions:

Product Market

A Product Market is a marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Circular Flow Model

An economic model that describes the movement of money, goods and services, and resources between producers and consumers in the economy.

Entrepreneurial Ability

The skill to innovate, introduce new products or processes, and successfully manage business ventures.

Rent

A periodic payment made by tenants to owners for the use of property or land, or the income derived from the lease of such property.