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).In a multiple regression estimating turnover rate using average bonus and trust index, what is the correct null hypotheses for testing the regression coefficient of Trust Index? A)β _TI ≠0 B)T _TI 0 C)β _TI =0 D)β _TI

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).In a multiple regression estimating turnover rate using average bonus and trust index, what is the correct null hypotheses for testing the regression coefficient of Trust Index? A)β _TI ≠0 B)T _TI >0 C)β _TI =0 D)β _TI <0 E)T _TI ≤ 0

Quizplus · Accepted Answer

The correct null hypothesis for testing any regression coefficient, including that of the Trust Index, is that the coefficient is equal to zero. This implies that the predictor (in this case, Trust Index) has no effect on the dependent variable (turnover rate).

A Sample of 33 Companies Was Randomly Selected and Data