Exam 21: Building Multiple Regression Models

A sample of firms was selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0). Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index (higher scores indicate a more innovative and creative organizational culture). Below are the multiple regression results. a. Write out the estimated regression equation. b. Are all of the independent variables significant in this regression equation (using α = 0.05)? Explain. c. Interpret the coefficient of the Industry. d. An alternative multiple regression model is fit to these data and the results are shown below. Which model is better? Explain. e. Based on the scatterplot below, is it appropriate to use Industry as an indicator variable in this regression model? Explain. f. Using the better model, predict turnover rate for a firm in the financial services sector with 1000 employees, an innovative index of 50 and 2% job growth rate.

Consider the following to answer the question(s) below: A sample of firms was selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0). Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index (higher scores indicate a more innovative and creative organizational culture). Below are the multiple regression results. -How much of the variability in Turnover Rate is explained by the multiple regression model?