Use the Following Information for Problems
to Determine What

question 9

Essay

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
$\begin{array} { l r r r } \text { Source } & \text { DF } & \text { SS } & \text { MS } \\ \text { Regression } & 2 & 262.73 & 131.36 \\ \text { Residual Error } & 30 & 67.27 & 2.24 \\ \text { Total } & 32 & 330.00 & \end{array}$


-How much of the variability in Turnover Rate is explained by the regression
equation?

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Definitions:

Volume Variance

The difference between the budgeted volume of production and the actual volume, which affects the fixed overhead costs.

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the production process of a company's products or services.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that do not vary with the level of production or sales, such as factory rent.

Fixed Manufacturing Overhead

Costs that do not change with the level of production, such as rent, salaries, and insurance for the manufacturing facilities.