A regression estimates that Q = 35 - 0.1 *X,where Q is the quit rate,X is the number of employees at the firm,and the firm sizes in the data set range from 50 to 100.If the firm has 350 employees then
A) its quit rate is predicted to be 70%.
B) its quit rate is predicted to be 35%.
C) its quit rate is predicted to be 0%.
D) we cannot predict the quit rate using this linear model.

Question

Quizplus · Accepted Answer

The regression model provided is based on data for firms with 50 to 100 employees. Since the firm in question has 350 employees, it falls outside the range of the data used to create the model. Therefore, predictions made for this firm using the given model may not be accurate or reliable.

A Regression Estimates That Q = 35 - 0