A Regression Estimates That Q = 35 - 0

question 27

Multiple Choice

A regression estimates that Q = 35 - 0.1*X,where Q is the quit rate,X is the number of employees at the firm.Both t-statistics are greater than two,and the firm sizes range from 50 to 100.This indicates that doubling the number of employees from 50 to 100 will reduce the quit rate by

• A) 50% points.
• B) 5% points.
• C) 35% points.
• D) 10% points.

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Definitions:

Cash Distribution

The process of paying out earnings to stakeholders, often in the form of dividends to shareholders or distributions to partners.

Liquidation Balances

The final amounts owed to creditors and investors after a company has been liquidated and all assets have been sold off.

Liquidation Process

The procedure of closing a business by selling its assets to pay off its liabilities and distributing any remaining assets to the owners or shareholders.

Gain or Loss

Represents the difference between the sale price of an asset and its original purchase price, indicating a financial profit or deficit.