To understand success at merger and integration, Vortex-SUX, a big company runs a regression to develop a paramorphic representation. They analyze all 300 acquisitions in the industry as follows: Merger success: 1=unsuccessful, 10=successful Increase in sales: 1=no increase, 10=10% increase Ease of integration: 1=not easy, 10=very easy Employee engagement at acquired company: 1=fully disengaged, 10= fully engaged Merger size (size of acquired company): 1=10 million, 10=100 million To make everything comparable, all variables are on a 1-10 scale. The following representation is obtained: Merger Success = 4.0 + .25(Increase in sales) + .85(Ease of integration) Likelihood + .35(Merger size) + 10(Employee engagement) (All predictors significant at p*.01; R2=72.13%) The correct interpretation of regression equation shown above is that a 1-point increase in employee engagement will: O Increase merger success by 10% holding all industry factors such as oil price and GDP constant O Increase merger success by 10% Increase merger success by 10% after accounting for deal size, sales increase, and ease of integration O Insufficient data to draw any conclusions O Increase merger success by 10% for small companies but not large companies