Interpret Multiple Regression Output A) the Indicator Variable in the Model Is Not Significant

question 3

Multiple Choice

Interpret multiple regression output.
-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 multiple regression output including a plot of residuals versus fitted values
Is shown below. Based on the results shown, which of the following statements is true? Dependent Variable is Average Annual Bonus

$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & - 1241.0 & 982.3 & - 1.26 & 0.218 \\ \text { Employees } & 0.8872 & 0.1318 & 6.73 & 0.000 \\ \text { Union } & 5253 & 1579 & 3.33 & 0.003 \\ \text { Emp*Union } & - 0.05424 & 0.02012 & - 2.70 & 0.012 \end{array}$

• A) The indicator variable in the model is not significant.
• B) The interaction term in the model is not significant.
• C) The indicator variable in the model is significant.
• D) The interaction term should be dropped from the model.
• E) None of the above.

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Definitions:

Pierre Bourdieu

A French sociologist who made significant contributions to the understanding of social structures, cultural practices, and the concepts of habitus, cultural capital, and social field.

Symbolic Violence

A term by Pierre Bourdieu that refers to the self-perpetuating systems of social inequality maintained by cultural and symbolic systems of domination.

Symbolic Power

The capacity to control, legitimize, and enforce meanings, symbols, and cultural norms without using direct physical force.

Racial Domination

A societal condition where one racial group subjugates and maintains power over another racial group through economic, political, social, and institutional means.