Use indicator (dummy) variables in multiple regression.
-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. The correct interpretation of the coefficient of Industry is Dependent Variable is Turnover Rate
A) The turnover rate will, on average, be 2.83% less for a firm from the high tech industry compared to the financial services sector with the same innovative index score,
Job growth and number of employees.
B) The turnover rate will, on average, be 2.83% less for a firm from the financial services sector compared to the high tech industry with the same innovative index score, job
Growth and number of employees.
C) The turnover rate will, on average, be 2.83% more for a firm from the high tech industry compared to the financial services sector with the same innovative index score,
Job growth and number of employees.
D) The turnover rate will, on average, be 6.03 % less for a firm from the high tech industry compared to the financial services sector with the same innovative index score,
Job growth and number of employees.
E) The turnover rate will, on average, be 0.47% less for a firm from the financial services
Correct Answer:
Verified
Q3: Check for collinearity among predictor variables
Q4: Adjust for different slopes using interaction terms
Q5: Interpret output from automatic multiple regression
Q6: Adjust for different slopes using interaction
Q7: Apply principles of the multiple regression model
Q9: Use indicator (dummy) variables in multiple regression.
-A
Q10: Use indicator (dummy) variables in multiple
Q11: Check for collinearity among predictor variables
Q12: Apply principles of the multiple regression
Q13: Interpret multiple regression output.
-A sample of
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