Interpret Multiple Regression Output $\text {Dependent Variable is Turnover Rate}$

question 13

Multiple Choice

Interpret multiple regression output.
-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, a company having a trust index
Score of 70 and an average annual bonus of $6500 has a predicted turnover rate of $\text {Dependent Variable is Turnover Rate}$
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 12.1005 & 0.7826 & 15.46 & 0.000 \\ \text { Trust Index } & - 0.07149 & 0.01966 & - 3.64 & 0.001 \\ \text { Average Bonus } & - 0.0007216 & 0.0001481 & - 4.87 & 0.000 \end{array}$
$$S = 1.49746 \quad R - S q = 79.6 \% \quad R - S q ( a d j ) = 78.3 \%$$

• A) 3.5%
• B) 4.2%
• C) 1.9%
• D) 2.4 %
• E) None of the above.

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Definitions:

Externalities

Financial implications or effects that influence bystander third parties and may be either beneficial or harmful.

Incentives

Factors that motivate or encourage individuals to perform actions or make decisions.

Social Benefit

The total benefit to society from a particular action or policy, including both direct benefits to participants and any external benefits to others.

Fire Extinguishers

Devices designed to extinguish or control small fires, often in emergency situations.