Using the output below, calculate the predicted turnover rate for a company having a trust index score of 70 and an average annual bonus of $6500. $$\begin{array}{l}
\text { Dependent Variable is Turnover Rate }\
\begin{array} { l r r r r }
\text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \
\text { Constant } & 12.1005 & 0.7826 & 15.46 & 0.000 \
\text { Trust Index } & - 0.07149 & 0.01966 & - 3.64 & 0.001 \
\text { Average Bonus } & - 0.0007216 & 0.0001481 & - 4.87 & 0.000
\end{array}
\end{array}$$
A) 3.5%
B) 4.2%
C) 1.9%
D) 2.4 %
E) None of the above.

Question

Using the output below, calculate the predicted turnover rate for a company having a trust index score of 70 and an average annual bonus of $6500. $$\begin{array}{l}
\text { Dependent Variable is Turnover Rate }\
\begin{array} { l r r r r } 
\text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \
\text { Constant } & 12.1005 & 0.7826 & 15.46 & 0.000 \
\text { Trust Index } & - 0.07149 & 0.01966 & - 3.64 & 0.001 \
\text { Average Bonus } & - 0.0007216 & 0.0001481 & - 4.87 & 0.000
\end{array}
\end{array}$$
A) 3.5%
B) 4.2%
C) 1.9%
D) 2.4 %
E) None of the above.

Quizplus · Accepted Answer

The predicted turnover rate is calculated using the regression equation: Turnover Rate = 12.1005 - 0.07149*(Trust Index) - 0.0007216*(Average Bonus). Substituting the given values: Turnover Rate = 12.1005 - 0.07149*(70) - 0.0007216*(6500) = 2.4%.

Using the Output Below, Calculate the Predicted Turnover Rate for a Company