In determining the best companies to work for, a number of variables are considered, including size, average annual pay, and turnover rate, etc. Moreover, employee surveys are conducted in order to assess aspects of the organization's culture, such as trust and openness to change. In an attempt to determine what affects turnover rate, a sample of 33 companies was randomly selected and data collected on the average annual bonus and turnover rate (%) for 2008. In addition, a questionnaire was administered to the employees of each company to arrive at a trust index (measured on a scale of 0-100). Below are the multiple regression results. a. Write out the estimated regression equation.
b. Is the regression equation significant overall? Explain.
c. How much of the variability in Turnover Rate is explained by the regression equation?
d. State the hypotheses for testing the regression coefficient of Trust Index. Based on the results, what do you conclude?
e. State the hypotheses for testing the regression coefficient of Average Annual Bonus. Based on the results, what do you conclude?
f. Predict the turnover rate for a company with a trust index score of 70 and an average annual bonus of $6500.
g. Comment on whether the conditions for multiple regression are satisfied based on the plots shown below.

Question

In determining the best companies to work for, a number of variables are considered, including size, average annual pay, and turnover rate, etc. Moreover, employee surveys are conducted in order to assess aspects of the organization's culture, such as trust and openness to change. In an attempt to determine what affects turnover rate, a sample of 33 companies was randomly selected and data collected on the average annual bonus and turnover rate (%) for 2008. In addition, a questionnaire was administered to the employees of each company to arrive at a trust index (measured on a scale of 0-100). Below are the multiple regression results.  a. Write out the estimated regression equation.
b. Is the regression equation significant overall? Explain.
c. How much of the variability in Turnover Rate is explained by the regression equation?
d. State the hypotheses for testing the regression coefficient of Trust Index. Based on the results, what do you conclude?
e. State the hypotheses for testing the regression coefficient of Average Annual Bonus. Based on the results, what do you conclude?
f. Predict the turnover rate for a company with a trust index score of 70 and an average annual bonus of $6500.
g. Comment on whether the conditions for multiple regression are satisfied based on the plots shown below.

Quizplus · Accepted Answer

The Answer of In determining the best companies to work for, a number of variables are considered, including size, average annual pay, and turnover rate, etc. Moreover, employee surveys are conducted in order to assess aspects of the organization's culture, such as trust and openness to change. In an attempt to determine what affects turnover rate, a sample of 33 companies was randomly selected and data collected on the average annual bonus and turnover rate (%) for 2008. In addition, a questionnaire was administered to the employees of each company to arrive at a trust index (measured on a scale of 0-100). Below are the multiple regression results.  a. Write out the estimated regression equation.
b. Is the regression equation significant overall? Explain.
c. How much of the variability in Turnover Rate is explained by the regression equation?
d. State the hypotheses for testing the regression coefficient of Trust Index. Based on the results, what do you conclude?
e. State the hypotheses for testing the regression coefficient of Average Annual Bonus. Based on the results, what do you conclude?
f. Predict the turnover rate for a company with a trust index score of 70 and an average annual bonus of $6500.
g. Comment on whether the conditions for multiple regression are satisfied based on the plots shown below.

In Determining the Best Companies to Work For, a Number