Are workers less likely to quit their jobs when wages are high than when they are low? The paper “Investigating the Causal Relationship Between Quits andWages: An Exercise in Comparative Dynamics” (Economic Inquiry [1986]: 61–83) gave data on x = average hourly wage and y = quit rate for a sample of industries. These data were used to produce the accompanying MINITAB output

a. Based on the given P-value, does there appear to be a useful linear relationship between average wage and quit rate? Explain your reasoning.

b. Calculate an estimate of the average change in quit rate associated with a $1 increase in average hourly wage, and do so in a way that conveys information about the precision and reliability of the estimate.

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The regression equation is quit rate = 4.86 -0.347 wage Predictor Constant wage s = 0.4862 Coef 4.8615 0.34655 R-sq = 72.9% Analysis of Variance Source Regression Error Total DF 1 13 14 Stdev t-ratio 0.5201 9.35 0.05866 5.91 R-sq(adj) = 70.8% SS MS 8.2507 8.2507 3.0733 0.2364 11.3240 p 0.000 0.000 F 34.90 p 0.000