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Use the Following Information for Problems
to Determine What

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Use the following information for problems
To determine what affects turnover rate, a sample of 33 companies was randomly selected and data collected on the average annual bonus and turnover rate (%). In addition, a questionnaire was administered to the employees of each company to arrive at a trust index (measured on a scale of 0 - 100). Below are the multiple regression results. Dependent Variable is Turnover Rate
 Predictor  Coef  SE Coef  T  P  Constant 12.10050.782615.460.000 Trust Index 0.071490.019663.640.001 Average Bonus 0.00072160.00014814.870.000\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=1.49746RSq=79.68RSq(adj)=78.388S = 1.49746 \quad \mathrm { R } - \mathrm { Sq } = 79.68 \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } ) = 78.3 \frac { 8 } { 8 }
Analysis of Variance
 Source  DF  SS  MS  Regression 2262.73131.36 Residual Error 3067.272.24 Total 32330.00\begin{array} { l r r r } \text { Source } & \text { DF } & \text { SS } & \text { MS } \\ \text { Regression } & 2 & 262.73 & 131.36 \\ \text { Residual Error } & 30 & 67.27 & 2.24 \\ \text { Total } & 32 & 330.00 & \end{array}
 Use the following information for problems  To determine what affects turnover rate, a sample of 33 companies was randomly selected and data collected on the average annual bonus and turnover rate (%). In addition, a questionnaire was administered to the employees of each company to arrive at a trust index (measured on a scale of 0 - 100). Below are the multiple regression results. 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 } = 79.68 \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } ) = 78.3 \frac { 8 } { 8 }  Analysis of Variance  \begin{array} { l r r r } \text { Source } & \text { DF } & \text { SS } & \text { MS } \\ \text { Regression } & 2 & 262.73 & 131.36 \\ \text { Residual Error } & 30 & 67.27 & 2.24 \\ \text { Total } & 32 & 330.00 & \end{array}     -Write out the estimated regression equation.

-Write out the estimated regression equation.


Definitions:

Conventional Finance Theory

A framework in economics that explains the behavior of financial markets, including the dynamics of assets and securities pricing, investment portfolios, and market mechanisms.

Behavioral Finance

An area of study focusing on how psychological influences and biases affect the financial behaviors of investors and financial markets.

Rational

Characterized by clear, logical thinking, often referring to decision-making that maximizes benefit.

Irrational

Acting without reason or understanding, often defying logical or expected behavior, particularly in economic contexts referring to market participants.

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