The Manager of a Human Resources Department Wishes to Predict

question 8

Multiple Choice

The manager of a human resources department wishes to predict the salary of an employee based on years of experience,x,and gender,g.(g = 1 for a male employee and 0 for a female employee) .A random sample of 50 employees results in the following least-squares regression equation:
= 40,000 + 2,500 x + 1,500 g +1,000 xg.What is the least-squares regression line for predicting the salary of male employees?

• A) = 41,500 + 3,500x
• B) = 40,000 + 3,500x
• C) = 40,000 + 2,500x
• D) = 41,500 + 1,500g
• E) = 40,000 + 4,000x

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Definitions:

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

Exchange-Traded Funds

Investment funds that are tradeable on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Contagion

A pattern in which stock markets have become increasingly interconnected around the world and markets in different countries have begun reacting similarly.

Net Present Value

A financial metric that calculates the present value of net cash flows (inflows minus outflows) over a period, used for assessing the profitability of an investment.