Question

In: Statistics and Probability

A company wants to study the relationship between an employee's length of employment and their number...

A company wants to study the relationship between an employee's length of employment and their
number of workdays absent. The company collected the following information on a random sample of
seven employees.

Number of workdays absent 4,2,3 , 5, ,7 ,7 8
length of employment(in yrs) 10, 5, 9 , 2 , 2 ,2 0

1. in this problem whuch is the dependent variable, what is the correlation? and interpret its meaning.

what is the coefficient of determination? interpret its meaning

2. suposse you know that a person has worked for the company for 8 years. how many workdays would you predict he/ she would be absent?

3. Interpret in physical terms the meaning of slope in this example

Solutions

Expert Solution

(1)

(i) Dependent Variable: Number of workdays absent

(ii)

From the given data, the following Table is calculated:

X Y XY X2 Y2
4 10 40 16 100
2 5 10 4 25
3 9 27 9 81
5 2 10 25 4
7 2 14 49 4
7 2 14 49 4
8 0 0 64 0
Total = 36 30 115 216 218

So,

Correlation is:

- 0.7479

Interpretation:

There is slightly strong inverse relationship between x and y.

(iii) Coefficient of determination is given by:

R2 = (-0.7479)2 = 0.5594

Interpretation:

55.94 % is the percentage of the variance in the dependent variable that is predictable from the independent variable.

(2)

So,

the Regression Line is:

For x = 8, we get:

                                                =1 (Round to integer)

So,

Answer is:

1

(3)

Slope = -1.273 means that for every increase of 1 year of experience, umber of workdays absence will reduce by 1.273 days.


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