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:

Error Costs

The expenses associated with making incorrect decisions or judgments, including costs of correction and opportunity costs.

Uncertain Conditions

Situations where outcomes or future events are unknown or unpredictable.

Unsold Merchandise

Items that remain in stock and are not sold within a certain period, potentially leading to inventory excess or losses.

Demanded Design

A design approach or product feature specifically requested or sought after by consumers or the market.