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Interpret Output from Automatic Multiple Regression Model Building Procedures 0.150.15 Alpha-To-Remove 0.150.15

Question 5

Multiple Choice

Interpret output from automatic multiple regression model building procedures.
-A sample of 22 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 stepwise
Regression results considering all predictor variables to explain Turnover Rate. The
Resulting multiple regression model is
Stepwise Regression: Turnover Rat versus Innovative I, Job Growth, ... Alpha-to-Enter: 0.150.15 Alpha-to-Remove: 0.150.15

Response is Turnover Rate on 4 predictors, with N=22\mathrm { N } = 22

 Step 123 Constant 8.6038.8389.841 Job Growth 0.8680.5740.500 T-Value 8.408.586.82 P-Value 0.0000.0000.000 Industry 3.142.70 T-Value 7.415.89 P-Value 0.0000.000 Innovative Index 0.028 T-Value 1.91 P-Value 0.072 S 1.530.7960.745RSq77.9194.3295.28RSq (adj)  76.8193.7394.50 Mallows Cp 67.56.04.3\begin{array} { l r r r } \text { Step } & 1 & 2 & 3 \\ \text { Constant } & 8.603 & 8.838 & 9.841 \\ & & & \\ \text { Job Growth } & - 0.868 & - 0.574 & - 0.500 \\ \text { T-Value } & - 8.40 & - 8.58 & - 6.82 \\ \text { P-Value } & 0.000 & 0.000 & 0.000\\\\\text { Industry } && - 3.14 & - 2.70 \\ \text { T-Value } && - 7.41 & - 5.89 \\ \text { P-Value } && 0.000 & 0.000\\\\ \text { Innovative Index } &&& - 0.028 \\ \text { T-Value } & &&- 1.91 \\ \text { P-Value } &&& 0.072 \\\\ \text { S } & 1.53 & 0.796 & 0.745 \\ \mathrm { R } - \mathrm { Sq } & 77.91 & 94.32 & 95.28 \\ \mathrm { R } - \mathrm { Sq } \text { (adj) } & 76.81 & 93.73 & 94.50 \\ \text { Mallows Cp } & 67.5 & 6.0 & 4.3 \end{array}


A) Turnover Rate = 9.841 - 6.82 Job Growth - 5.89 Industry - 1.91 Innovative Index
B) Turnover Rate = 8.838 - 0.574 Job Growth - 3.14 Industry
C) Turnover Rate = 9.841 - 0.500 Job Growth - 2.70 Industry - 0.028 Innovative Index
D) Turnover Rate = 8.838 - 8.58 Job Growth - 7.41 Industry
E) None of the above.

Correct Answer:

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