In: Statistics and Probability
7. The following data represent the number of workdays absent during the past year, y, and the number of years employed by the company x, for seven employees randomly selected from a large company. Assume data is normally distributed.
Y 2 0 5 6 4 9 2
X 7 8 2 3 5 3 7
The slope estimate (b1) was found to be = -1.09 That is:
b 1= nExy - (Ex) (EY)
---------------------------- = - 1.09
nEx2 - (EX)2
a) Using appropriate statistical techniques and the above-added information, find the least squares estimate of the regression equation. i. e. What is the linear regression equation?
b) Using the proper (hypothesis) statistical test, support or refute the assumption above, i.e. there is a linear relationship between years employed and absenteeism. [
Note: S(b) = 0.28425