Perform Statistical Inference for Multiple Regression $$S = 1.49746 \quad \mathrm { R } - \mathrm { Sq } = 79.6 \% \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } \mathrm { j } ) = 78.3 \%$$

question 7

Multiple Choice

Perform statistical inference for multiple regression.
-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 correct interpretation of the
Regression coefficient associated with Average Bonus is Dependent Variable is Turnover Rate
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 12.1005 & 0.7826 & 15.46 & 0.000 \\ \text { Trust Index } & - 0.07149 & 0.01966 & - 3.64 & 0.001 \\ \text { Average Bonus } & - 0.0007216 & 0.0001481 & - 4.87 & 0.000 \end{array}$
$$S = 1.49746 \quad \mathrm { R } - \mathrm { Sq } = 79.6 \% \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } \mathrm { j } ) = 78.3 \%$$

• A) Holding the trust index constant, increasing the average annual bonus by $100 will decrease the turnover rate by 7.15%.
• B) For companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with a decrease in turnover rate of 7.15%, on average.
• C) For companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with an increase in turnover rate of 7.15%, on
• Average.
• D) An increase of $100 in the average annual bonus decreases the turnover rate by 7.15%.
• E) None of the above.

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Definitions:

Analogy Technique

A method of problem-solving or explanation that compares two different things by highlighting their similarities.

New Ideas

Fresh and original concepts, thoughts, or approaches that have not been previously considered or explored.

Defer Judgment

The practice of postponing evaluation or critical thinking about ideas or situations in order to explore all possibilities without bias.

Osborn

Refers to Alex Osborn, the advertising executive and author who coined the term "brainstorming" and developed techniques to foster creative thinking.