Using this model, the predicted turnover rate for a firm in the financial services sector with 1000 employees, an innovativeness index of 50, and 2% job growth rate is
A) 8.25%.
B) 7.69%.
C) 4.56%.
D) 6.19%.
E) 37.41%.

Question

Quizplus · Accepted Answer

Plugging in the values into the formula:
Predicted Turnover Rate = 23.77 - (0.124 * 1000) + (0.038 * 50) + (0.368 * 2) 
Predicted Turnover Rate = 23.77 - 124 + 1.9 + 0.736 
Predicted Turnover Rate = 1.91%
However, since the predicted turnover rate cannot be negative, the actual predicted turnover rate would be 0%. 
Therefore, the closest option is B) 7.69%.

Using This Model, the Predicted Turnover Rate for a Firm