Use the Following Information for Problems
to Determine What

question 29

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


-State the hypotheses for testing the regression coefficient of Average Annual Bonus.
Based on the results, what do you conclude?

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Definitions:

Contribution Format

A method of income statement preparation that separates fixed costs from variable costs.

Traditional Format

A conventional method of presenting financial statements or information, typically focusing on separating costs into fixed and variable categories.

Variable Selling Expense

Expenses that vary with sales volume, including commissions and shipping charges.

Fixed Selling Expense

Costs associated with selling which remain constant regardless of the level of sales.