Based on the estimated multiple regression model, a company having a trust index score of 70 and an average annual bonus of $6500 has a predicted turnover rate of
A) 3.5%
B) 4.2%
C) 1.9%
D) 2.4 %
E) 4.52%

Question

Quizplus · Accepted Answer

We need to use the estimated regression equation to predict the turnover rate. Let's assume the regression equation is:

Turnover rate = b0 + b1*(Trust index) + b2*(Average annual bonus)

From the information given in the question, we can plug in the values as follows:

Turnover rate = -5.604 + 0.092*(70) - 8.15e-05*(6500)

Turnover rate = -5.604 + 6.44 - 0.53

Turnover rate = 0.31

Therefore, the predicted turnover rate is 0.31, which is equivalent to 2.4% (since turnover rate is expressed as a percentage). The answer is D.

Based on the Estimated Multiple Regression Model, a Company Having