A Sample of 30 Companies Was Randomly Selected for a Study

question 5

Essay

A sample of 30 companies was randomly selected for a study investigating what factors affect the size of company bonuses. Data were collected on the number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no). Below are the multiple regression results. a. Write out the estimated regression equation.
b. Are all of the independent variables significant in this regression equation (using α = 0 .05)? Explain.
c. Interpret the coefficient of the Union.
d. Based on the scatterplot below, do you think using Union as an indicator variable in this model is appropriate? Explain. e. An alternative multiple regression model is fit to these data and the results are shown below. Which model is better? Explain. f. Using the better model, predict the annual average bonus for a company with 7500 employees that are not unionized.

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Definitions:

Incubators

Organizations designed to support the development of startup companies by providing resources, mentorship, and often capital.

Triple-Net Lease

A lease in which the tenant pays a base monthly rent plus real estate taxes, insurance, and any other operating expenses incurred for the building.

Net Lease

A lease in which the tenant pays a base monthly rent plus some or all real estate taxes of the building.

Free-Flow Layout

A type of layout used by small retail stores that encourages customers to wander and browse through the store.