In industry, the relationship be- tween wages and the quit

Last updated: 7/17/2022

In industry, the relationship be- tween wages and the quit ratio of employees is defined to be the percentage of employees that quit within 1 year of employment. The quit ratio of a large restaurant chain that paid its employees the minimum hourly wage ($7.25 per hour) was .2 or 20 employees per 100. When the company raised the hourly wage to $8, the quit ratio dropped to .18, or 18 employees per 100. a. Assuming a linear relationship be- tween the quit ratio Q(x) and the hourly wage x, find an expression for Q(x). b. What should the hourly wage be for the quit ratio to drop to 10 employees per 100?