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Carlos Cavazos, Director of Human Resources, Is Exploring Employee Absenteeism

Question 71

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Carlos Cavazos, Director of Human Resources, is exploring employee absenteeism at the Plano Piano Plant.A multiple regression analysis was performed using the following variables.The results are presented below.  Variable  Description Y number of days absent last fiscal year x1 comrnuting distarnce (in miles)  x2 employee’s age (in years)  x3 single-parent household (0= no, 1= yes ) x4 length of employment at PpP (in years)  x5 shift (0= day 1= night)  \begin{array} { | l | l | } \hline \text { Variable } & \text { Description } \\\hline Y & \text { number of days absent last fiscal year } \\\hline x _ { 1 } & \text { comrnuting distarnce (in miles) } \\\hline x _ { 2 } & \text { employee's age (in years) } \\\hline x _ { 3 } & \text { single-parent household } ( 0 = \text { no, } 1 = \text { yes } ) \\\hline x _ { 4 } & \text { length of employment at PpP (in years) } \\\hline x _ { 5 } & \text { shift } ( 0 = \text { day } 1 = \text { night) } \\\hline\end{array}  Coefficients  Standard Error t Statistic p-value  Intercept 6.5941463.2730052.0147070.047671x10.180190.1419491.269390.208391x20.2681560.2606431.0288280.307005x32.310680.9620562.401820.018896x40.505790.2708721.867250.065937x52.3295130.9403212.477360.015584\begin{array} { | c | c | c | c | c | } \hline & \text { Coefficients } & \text { Standard Error } & t \text { Statistic } & p \text {-value } \\\hline \text { Intercept } & 6.594146 & \mathbf { 3 . 2 7 3 0 0 5 } & \mathbf { 2 . 0 1 4 7 0 7 } & \mathbf { 0 . 0 4 7 6 7 1 } \\\hline \boldsymbol { x } _ { 1 } & - 0.18019 & 0.141949 & - 1.26939 & 0.208391 \\\hline \mathbf { x } _ { 2 } & 0.268156 & 0.260643 & 1.028828 & 0.307005 \\\hline \boldsymbol { x } _ { 3 } & - 2.31068 & 0.962056 & - 2.40182 & 0.018896 \\\hline \mathbf { x } _ { 4 } & - 0.50579 & 0.270872 & - 1.86725 & 0.065937 \\\hline \boldsymbol { x } _ { 5 } & \mathbf { 2 . 3 2 9 5 1 3 } & 0.940321 & 2.47736 & 0.015584 \\\hline\end{array} df SS  ME Fp-value  Repression 5279.35855.87164.4237550.001532 Residual 67846.203612.6299 Total 721125.562\begin{array} { | c | c | c | c | c | c | } \hline & \mathrm { df } & \text { SS } & \text { ME } & F & p \text {-value } \\\hline \text { Repression } & 5 & 279.358 & 55.8716 & 4.423755 & \mathbf { 0 . 0 0 1 5 3 2 } \\\hline \text { Residual } & 67 & 846.2036 & 12.6299 & & \\\hline \text { Total } & 72 & 1125.562 & & & \\\hline\end{array} R=0.498191R2=0.248194 Adj R2=0.192089se=3.553858n=73\begin{array} { | c | c | c | } \hline R = 0.498191 & R ^ { 2 } = 0.248194 & \text { Adj } R ^ { 2 } = 0.192089 \\\hline \mathrm { s } _ { \mathrm { e } } = 3.553858 & n = 73 & \\\hline\end{array} Which of the following conclusions can be drawn from the above results?


A) All the independent variables in the regression are significant at 5% level.
B) Commuting distance is a highly significant (<1%) variable in explaining absenteeism.
C) Age of the employees tends to have a very significant (<1%) effect on absenteeism.
D) This model explains a little over 49% of the variability in absenteeism data.
E) A single-parent household employee is expected to be absent fewer days, all other variables held constant, compared to one who is not a single-parent household.

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