A Manager at a Local Bank Analyzed the Relationship Between

question 2

Multiple Choice

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months) , gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical) . The following ANOVA summarizes the regression results: In the regression model, which of the following are dummy variables?

• A) Intercept
• B) Service
• C) Service and gender
• D) Gender and job
• E) Service, gender, and job

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Definitions:

Leverage

The use of borrowed funds to increase the potential return of an investment.

Solvency

A measure of a company's ability to meet its long-term financial obligations, reflecting its financial stability and health.

Profitability Analysis

Evaluation of a company's ability to generate profits from its operations, typically assessed through various financial metrics and ratios.

Profitability Analysis

An assessment process to determine the ability of a business to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.