A Sample of 33 Companies Was Randomly Selected and Data

question 13

Multiple Choice

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%) , and trust index (measured on a scale of 0 - 100) .
The regression coefficient for the variable Trust Index is -0.07149. The correct Interpretation of this value is

• A) For companies that give the same average annual bonus, an increase of 10 points On the trust index is associated with a decrease of 0.71% in turnover rate, on Average.
• B) An increase of 10 points on the trust index results in a decrease of 7.1% in Turnover rate.
• C) Holding average annual bonus constant, increasing the trust index by 10 points Will decrease the turnover rate by 7.1%.
• D) For companies that give the same average annual bonus, an increase of 10 points On the trust index is associated with an increase of 0.71% in turnover rate, on Average.
• E) None of the above.

---

Definitions:

Ratio Form

A mathematical expression that represents the relationship between two numbers or variables as a fraction.

Average Total Assets

A financial metric that represents the average value of all a company's assets over a specified period.

Return On Assets

This ratio indicates how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.

Ratio Form

A presentation format for financial statements or equations where components are displayed as a proportion of a whole.