How do you come up with this answer? Thanks! 29) A sample of 33 companies was ra

Question

How do you come up with this answer? Thanks!

29) 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). Using the output below, and a significance level of a-.01, we can conclude that Dependent Variable is Turnover Rate Predictor Coef SE Coef TP Constant 12.1005 0.7826 15.46 0.000 Trust Index -0.07149 0.01966 -3.64 0.001 Average Bonus -0.0007216 0.0001481 -4.87 0.000 S= 1.49746 R-Sq=79.6% R-Sq(adj)=78.3% Analysis of Variance Source DF SS MS Regression 2 262.73 131.36 Residual Error 30 67.27 2.24 Total32 330.00 A) The multiple regression model is significant overall. The predictor Constant is a significant independent variable in explaining turnover rate. C) Average Annual Bonus is a significant independent variable in explaining turnover rate. D) Trust Index is a significant independent variable in explaining turnover rate. E) All of these.

Explanation / Answer

The answer is (E) all of the above

For overall significance of the model we conduct anova f test

The value of F statistic is , F = MSR/ MSE = 131.36/2.24 = 58.64

The p value for F = 58.64 with degrees of freedom = (2,30) is less than 0.0001

Since p value is very small, the result is highly significant,

Therefore (A) is true

Again t tests are conducted to test the significance of individual independent variables.

We can see that all the p values for tstat are very small, implying significance of the variables

Therefore B, C and D are true

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.