Write Out the Multiple Regression Model $\text {Dependent Variable is Turnover Rate}$

question 4

Multiple Choice

Write out the multiple regression model.
-In determining the best companies to work for, a number of variables are considered,
Including size, average annual pay, and turnover rate, etc. Employee surveys are often
Conducted in order to assess aspects of the organization's culture, such as trust and
Openness to change. A sample of 33 companies was randomly selected and data
Collected on the average annual bonus and turnover rate (%) . A questionnaire was also
Administered to the employees of each company to arrive at a trust index (measured on a
Scale of 0 - 100) . Based on the output shown below, the estimated multiple regression
Model is $\text {Dependent Variable is Turnover Rate}$
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 12.1005 & 0.7826 & 15.46 & 0.000 \\ \text { Trust Index } & - 0.07149 & 0.01966 & - 3.64 & 0.001 \\ \text { Average Bonus } & - 0.0007216 & 0.0001481 & - 4.87 & 0.000 \end{array}$
$$S = 1.49746 \quad R - S q = 79.6 \% \quad R - S q ( a d j ) = 78.3 \%$$

• A) Turnover Rate = 0.01966 Trust Index + 0.0001481 Average Bonus
• B) Turnover Rate = 0.7826 + 0.01966 Trust Index + 0.0001481 Average Bonus
• C) Turnover Rate = 12.1005 - 0.07149 Trust Index - 0.0007216 Average Bonus
• D) Turnover Rate = 12.1005 + 0.07149 Trust Index + 0.0007216 Average Bonus
• E) Turnover Rate = 15.46 - 3.64 Trust Index - 4.87 Average Bonus

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Definitions:

Unit Price

The cost per single unit of an item or investment.

Percent Change

The measurement of the relative change of a quantity, expressed as a percentage, to denote increase or decrease from one period to another.

Share Price

The current price of a single share of a company's stock on the market.

HST

Harmonized Sales Tax, a combined tax that includes both a federal and provincial component, applied to the sale of goods and services.