Question

Suppose we consider the productivity of a factory and want to predict the number of units as a function of production lines and workers. From the statements below determine which one is NOT correct.

a-) The effect of increasing the number of production lines is likely to depend on the number of workers.

b-) The inclusion of the interaction term between lines and workers is likely to have a positive effect on units produced.

c-) The total number of workers is positively correlated with the number of units produced.

d-) Adding an additional line will lead to a two-fold increase in the number of units if the interaction term is included in the model.

Answer 1

The statement that is NOT correct is adding an additional line will lead to a two-fold increase in the number of units if the interaction term is included in the model.

Step-by-step explanation:

The statement that is NOT correct is d-) Adding an additional line will lead to a two-fold increase in the number of units if the interaction term is included in the model.

In reality, adding an additional line will not necessarily lead to a two-fold increase in the number of units produced if the interaction term is included in the model. The effect of adding a line depends on the number of workers and other factors. Increasing the number of production lines is likely to depend on the number of workers, and the total number of workers is positively correlated with the number of units produced. The inclusion of the interaction term between lines and workers is likely to have a positive effect on units produced.