Adjust for Different Slopes Using Interaction Terms in Multiple Regression

question 6

Multiple Choice

Adjust for different slopes using interaction terms in multiple regression.
-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. Based on this
Model, what is the annual average bonus for a company with 7500 employees that are not
Unionized? $$\begin{array}{l}\text { Dependent Variable is Average Annual Bonus }\\\\\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\\text { Constant } & - 1241.0 & 982.3 & - 1.26 & 0.218 \\\text { Employees } & 0.8872 & 0.1318 & 6.73 & 0.000 \\\text { Union } & 5253 & 1579 & 3.33 & 0.003 \\\text { Emp*Union } & - 0.05424 & 0.02012 & - 2.70 & 0.012\end{array}\end{array}$$

• A) $5413
• B) $10,259.20
• C) $10,666
• D) $5253
• E) $7980.25

---

Definitions:

Low Self-Esteem

A personal feeling of worthlessness or a lack of confidence in one's own abilities or value.

Highly Creative

Possessing a great capacity for creativity, characterized by originality, imagination, and the ability to produce ideas or solutions that are both novel and useful.

Undeserved Praise

Compliments or commendations given without genuine merit, often leading to false confidence or unrealistic self-perceptions.

Genuine Self-Esteem

A true and positive perception of oneself, grounded in an accurate assessment of abilities and achievements, leading to self-respect and confidence.