A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100).
The regression coefficient for the variable Trust Index is -0.07149. The correct Interpretation of this value is
A) For companies that give the same average annual bonus, an increase of 10 points On the trust index is associated with a decrease of 0.71% in turnover rate, on Average.
B) An increase of 10 points on the trust index results in a decrease of 7.1% in Turnover rate.
C) Holding average annual bonus constant, increasing the trust index by 10 points Will decrease the turnover rate by 7.1%.
D) For companies that give the same average annual bonus, an increase of 10 points On the trust index is associated with an increase of 0.71% in turnover rate, on Average.
E) None of the above.

Question

Quizplus · Accepted Answer

The regression coefficient of -0.07149 for the Trust Index means that for each unit increase in the Trust Index, the turnover rate decreases by 0.07149%. Therefore, an increase of 10 points in the Trust Index would be associated with a decrease of 0.7149% (or approximately 0.71%) in the turnover rate, holding other factors constant.

A Sample of 33 Companies Was Randomly Selected and Data