Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 a dummy variable(Grad)which takes on 1 when the individual holds a graduate degree in a relevant field and 0 otherwise. Data have been collected for 36 managers. The sample regression equation is= 13,260.50 + 14.62Profit+ 1,867.00Years+ 45,121.03Grad 0.1531ProfitGrad 198.05YearsGrad. Which of the following is the difference in the predicted compensations for two managers, one having a graduate degree, the other one not, both having 10 years with the company, and having the same business-unit profit of $3,000,000?

Group of answer choices

A) $420,007.17

B) $422,261.97

C) $426,786.18

D) $42,681.23

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Linear Algebra

Authors: Ron Larson

8th Edition

1305877020, 9781305877023

More Books

Students also viewed these Mathematics questions

Question

1. To generate a discussion on the concept of roles

Answered: 1 week ago

Question

6. What information processes operate in communication situations?

Answered: 1 week ago