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Using the Output Below, Which Is the Correct Interpretation of the Coefficient

Question 15

Multiple Choice

Using the output below, which is the correct interpretation of the coefficient of Average Bonus? Response Variable is Turnover Rate
R\mathrm { R } - squared =79.6%= 79.6 \%

 Predictor  Coef  SE Coef  T  P  Constant 2.10050.782615.460.000 Trust Index 0.071490.019663.640.001 Average Bonus 0.00072160.00014814.870.000\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 2.1005 & 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}


A) For every additional $10,000 dollars in Average Bonus, the predicted Turnover Rate will go down about 7.2%.
B) For every additional $10,000 dollars in Average Bonus, the predicted Turnover Rate will go up about 7.2%.
C) For every additional $10,000 dollars in Average Bonus, and taking account of the other predictor (Trust Index) , the predicted Turnover Rate will go down about 7.2%.
D) For every additional $10,000 dollars in Average Bonus, and taking account of the other predictor (Trust Index) , the predicted Turnover Rate will go up about 7.2%.
E) None of the above.

Correct Answer:

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