The Manager of a Human Resources Department Wishes to Predict

question 15

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.Interpret the value of the coefficient of the interaction term xg.

• A)We predict that the growth rate of a male employee's salary will be $1,000 per year higher than that of a female employee.
• B)We predict that a man with 0 years of experience will make $1,000 more than a woman with 0 years of experience.
• C)We predict that the growth rate of a male employee's salary will be $1,000 per year.
• D)We predict that a woman with 0 years of experience will make $1,000 more than a man with 0 years of experience.
• E)We predict that the growth rate of a female employee's salary will be $1,000 per year.

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Definitions:

Genetic Disorder

A condition caused by abnormalities in an individual's DNA, affecting various body functions and characteristics.

Hunger Pangs

Feelings of discomfort or weakness caused by a lack of food, often signaling the need to eat.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women, used to categorize underweight, normal weight, overweight, and obesity.

Obese

Having an excessive amount of body fat, typically measured by body mass index (BMI) of 30 or higher.