Using the Output Below, Calculate the Predicted Turnover Rate for a Company

question 6

Multiple Choice

Using the output below, calculate the predicted turnover rate for a company having a trust Index score of 70 and an average annual bonus of $6500.

$\text{ Response Variable is Turnover Rate}$

$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 2.1005 & 0.7826 & 15.46 & 0.000 \\ \text { Trust Index } & - 0.07149 & 0.01966 & - 3.64 & 0.001 \\ \text { Average Bonus } & - 0.0007216 & 0.0001481 & - 4.87 & 0.000 \end{array}$

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

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Definitions:

Regressive

Refers to a tax system in which the tax rate decreases as the taxable amount increases, often placing a heavier burden on low-income earners.

Progressive

A political and social philosophy advocating for reforms that aim to reduce inequality, improve social justice, and enhance welfare.

Marginal Tax Rate

The rate of tax applied to the last dollar of income, showing the percentage of tax paid on any additional dollar earned.

Clinton Administration

The executive period from 1993 to 2001 in the United States, under the presidency of Bill Clinton, characterized by economic prosperity and political challenges.