A sample of 33 companies was randomly selected and data collected on the average
ID: 3330899 • Letter: A
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
A.An increase of $100 in the average annual bonus decreases the turnover rate by 7.2%.
B.Holding the trust index constant, increasing the average annual bonus by $100 will decrease the turnover rate by 7.2%.
C.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.
D.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.