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

question 13

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

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

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Definitions:

Fair Values

The monetary amount expected from selling an asset or required to cover a liability, in a well-organized deal among market stakeholders, at the time of assessment.

Control

The power to govern the financial and operating policies of an organization so as to obtain benefits from its activities.

Investee

A company or entity in which an investor holds an interest, typically through ownership of shares.

Acquisition Cost

The total cost associated with acquiring an asset or investment, including the purchase price and all related expenses.