A regression estimates that Q = 35 - 0.1*X,where Q is the quit rate,X is the number of employees at the firm.Both t-statistics are greater than two,and the firm sizes range from 50 to 100.This indicates that doubling the number of employees from 50 to 100 will reduce the quit rate by
A) 50% points.
B) 5% points.
C) 35% points.
D) 10% points.

Question

Quizplus · Accepted Answer

Doubling the number of employees from 50 to 100 increases X by 50. The coefficient on X is -0.1, so the change in Q is -0.1*50 = -5, indicating a reduction in the quit rate by 5 percentage points.

A Regression Estimates That Q = 35 - 0