A sample of 33 companies was randomly selected and data collected on the average

Question

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0-100). The regression coefficient associated with Average Bonus was found to be 0.0007216.  What is the interpretation of this value?

An increase of $100 in the average annual bonus decreases the turnover rate by 7.2%.

Holding the trust index constant, increasing the average annual bonus by $100 will decrease the turnover rate by 7.2%.

For companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with an increase in turnover rate of 7.2%, on average.

For companies that have the same score

An increase of $100 in the average annual bonus decreases the turnover rate by 7.2%.

Holding the trust index constant, increasing the average annual bonus by $100 will decrease the turnover rate by 7.2%.

For companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with an increase in turnover rate of 7.2%, on average.

For companies that have the same score

Explanation / Answer

For regression coefficient associated with average bonus is -0.0007216 indicates that Holding the trust index constant ,increase in the annual bonus by $100 will decreases the turnover rate by 7.2%.

Answer B is correct.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.