Data Were Collected for a Study Investigating What Factors Affect

question 10

Multiple Choice

Data were collected for a study investigating what factors affect the size of company bonuses.The number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no) was included in two competing multiple regression models.Which of the following statements is true?

• A)Model 2 explains less of the variability in average annual bonus than model 1.
• B)The standard deviation of residuals is lower for model 1 compared to model 2.
• C)Model 1 includes an interaction term.
• D)Model 2 is better than model 1.
• E)Model 1 is better than model 2.

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Definitions:

Window Glass Workers

Individuals skilled in the manufacturing and installation of window glass, a trade that involves the production of flat glass for architectural use.

French

Relating to France or its people, language, or culture.

Belgian Imports

Goods and services purchased from Belgium by other countries, including chocolates, diamonds, beers, and pharmaceutical products.

American Labor Union

An organization that represents the interests of workers in various industries, advocating for better wages, working conditions, and rights in the United States.