To Encourage Performance,loyalty,and Continuing Education,the Human Resources Department at a Large

question 87

Multiple Choice

To encourage performance,loyalty,and continuing education,the human resources department at a large company wants to develop a regression-based compensation model for mid-level managers based on three variables: business unit-profitability in $1,000s (Profit) ,years with company (Years) ,and dummy variable (Grad) ,graduate degree in relevant field.Data have been collected for 36 managers.The sample regression equation is = - 13,264.3 + 14.13Profit + 1,868.53Years + 45,121.94Grad - 0.1539Profit × Grad - 198.34Years × Grad.Which of the following is the predicted value of Compensation for a manager having 15 years with the company,a graduate degree,and a business-unit profit of $4,800,000?

• A) $121,492.60
• B) $108,324.80
• C) $101,749.70
• D) $112,101.60