Using the Output Below, Which Is the Correct Interpretation of the Coefficient

question 14

Multiple Choice

Using the output below, which is the correct interpretation of the coefficient of Average Bonus? Response Variable is Turnover Rate
$\mathrm { R } -$ squared $= 79.6 \%$

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

• A)For every additional $10,000 dollars in Average Bonus, the predicted Turnover Rate will go down about 7.2%.
• B)For every additional $10,000 dollars in Average Bonus, the predicted Turnover Rate will go up about 7.2%.
• C)For every additional $10,000 dollars in Average Bonus, and taking account of the other predictor (Trust Index), the predicted Turnover Rate will go down about 7.2%.
• D)For every additional $10,000 dollars in Average Bonus, and taking account of the other predictor (Trust Index), the predicted Turnover Rate will go up about 7.2%.
• E)None of the above.

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Definitions:

Acquisition Business Combination

A transaction or deal where one company purchases or merges with another company to expand its business operations.

Fair Values

An estimate of the market value of an asset or liability based on current conditions rather than historical cost.

Common Stock

Type of equity ownership in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and appreciation of the stock's value.

Acquisition

The process of gaining control, ownership, or a significant amount of shares of another company, often to expand operations or enter new markets.