Consider the Following to Answer the Question(s) Below

question 21

Multiple Choice

Consider the following to answer the question(s) below:
A sample of firms was selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0) . Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index (higher scores indicate a more innovative and creative organizational culture) . Below are the multiple regression results.
-Which statement is true about the estimated multiple regression model?

• A) Turnover rate is the indicator variable.
• B) Innovative index is the indicator variable.
• C) Test results indicate that the model is significant in explaining Turnover rate.
• D) Innovative index is the indicator variable and the F test results indicate that the model is not significant in explaining Turnover rate.
• E) All of the given possible statements are true.

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Definitions:

Probability

A mathematical measure of the likelihood of occurrence of a particular event, expressed as a number between 0 and 1.

Major Earthquake

An earthquake of high magnitude that has the potential to cause significant damage and loss of life, usually above a magnitude of 7 on the Richter scale.

Poisson Model

A statistical model that predicts the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Probability

The quantification of the probability that an event will take place, expressed as a number from 0 to 1, with 0 signifying that the event cannot occur and 1 signifying absolute certainty of occurrence.