Question

In: Economics

A large city hospital conducted a study to investigate the relationship between the number of unauthorized...

A large city hospital conducted a study to investigate the relationship between the number of unauthorized days that employees are absent per year and the distance (miles) between home and work for the employees. A sample of 10 employees was selected and the following data were collected.

Distance to Work (miles)

Number of Days Absent

1

8

3

5

4

8

6

7

8

6

10

3

12

5

14

2

14

4

18

2

Use Excel - no hand calculations.

1. Write the regression equation.

2. Interpret the regression constant and regression coefficient.

3. Forecast a value for the dependent variable, test the significance of the regression coefficient at an alpha level of .05

4. Test the overall significance of the regression model, and Interpret the coefficient of determination.

Solutions

Expert Solution

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.8431

R Square

0.7109

Adjusted R Square

0.6747

Standard Error

1.2894

Observations

10

ANOVA

df

SS

MS

F

Significance F

Regression

1

32.6993

32.6993

19.6677

0.0022

Residual

8

13.3007

1.6626

Total

9

46.0000

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

8.098

0.8088

10.0119

0.0000

6.2327

9.9630

Distance to Work (miles) X

-0.3442

0.0776

-4.4348

0.0022

-0.5232

-0.1652

1. The regression equation is Y = a+bx
Y = 8.1-0.34X
Where Y is Number of Days Absent, X is Distance to Work (miles)

2. The regression constant is 8.1, means even when distance to work is zero, the average number of days employees absent is 8 days

The regression constant is -0.34, means with the increase in distance to work, the average number of days employees absent decreases. So for 1 mile increase in mile, the number of day employees absent decreases by -0.34

3. At a value of X =18, the value of Y = 8.1-0.34*18 = 1.98 or 2.
The regression coefficient is significant at alpha = 0.05 as the P-value of the coefficient is less than 0.05

4. The overall model is significant as the calculated F value is greater than significance F value in the ANOVA table Coefficient of determination or R^2 is 0.8431 which means the model is able to capture 84.31 percent of variation or Distance to work (miles) is able to explain the number of days absent by 84.31 percent


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