The Manager of a Human Resources Department Wishes to Predict $\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg }$

question 21

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: $\text { Salary } = 40,000 + 2,500 \mathrm { x } + 1,500 \mathrm {~g} + 1,000 \mathrm { xg }$ What is the least-squares regression line for predicting the salary of female employees?

• A) \(\text { Salary }\) = 40,000 + 4,000x
• B) \(\text { Salary }\) = 41,500 + 1,500g
• C) \(\text { Salary }\) = 40,000 + 2,500x
• D) \(\text { Salary }\) = 40,000 + 3,500x
• E) \(\text { Salary }\) = 41,500 + 3,500x

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Definitions:

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service, crucial for decision-making in production levels.

Natural Monopoly

A market condition where a single firm can supply a product or service to an entire market at a lower cost than what would be possible if there were multiple firms due to economies of scale.

Production

The process of creating goods or services through the combination of labor, materials, and technology, which contributes to economic output.

Maximum Profit

The highest possible financial gain that a company can achieve in a given period under existing conditions.