Use Indicator (Dummy) Variables in Multiple Regression $S = 0.739664 \quad \mathrm { R } - \mathrm { Sq } = 95.6 \% \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } ) = 94.6 \%$

question 2

Multiple Choice

Use indicator (dummy) variables in multiple regression.
-A sample of firms was selected from the high tech industry (Industry = 1) and the
Financial services sector (Industry = 0) . Data were collected on the following variables:
Turnover rate, job growth, number of employees, and innovative index (higher scores
Indicate a more innovative and creative organizational culture) . Below are the multiple
Regression results. The correct interpretation of the coefficient of Industry is Dependent Variable is Turnover Rate

$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \mathbf { T } & \mathbf { P } \\ \text { Constant } & 9.2439 & 0.7871 & 11.74 & 0.000 \\ \text { Innovative } \text { Index } & - 0.02402 & 0.01524 & - 1.58 & 0.134 \\ \text { Job Growth } & - 0.50127 & 0.07287 & - 6.88 & 0.000 \\ \text { Employees } & 0.0006144 & 0.0005461 & 1.13 & 0.276 \\ \text { Industry } & - 2.8329 & 0.4699 & - 6.03 & 0.000 \end{array}$

$S = 0.739664 \quad \mathrm { R } - \mathrm { Sq } = 95.6 \% \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } ) = 94.6 \%$

• A) The turnover rate will, on average, be 2.83% less for a firm from the high tech industry compared to the financial services sector with the same innovative index score,
• Job growth and number of employees.
• B) The turnover rate will, on average, be 2.83% less for a firm from the financial services sector compared to the high tech industry with the same innovative index score, job
• Growth and number of employees.
• C) The turnover rate will, on average, be 2.83% more for a firm from the high tech industry compared to the financial services sector with the same innovative index score,
• Job growth and number of employees.
• D) The turnover rate will, on average, be 6.03 % less for a firm from the high tech industry compared to the financial services sector with the same innovative index score,
• Job growth and number of employees.
• E) The turnover rate will, on average, be 0.47% less for a firm from the financial services