A manufacturing company opened a second branch plant in the same city where its first plant operates. Some of the employees had been assigned involuntarily to the new plant while some others volunteered to be transformed from the first plant to the new plant. The production manager of the new plant would like to find out whether employees who volunteered for the new plant and those who were involuntarily assigned to it differ with respect to productivity. From a random sample of 50 employees, the manager estimated the following multiple regression equation: $\hat{y}$ = -2400 + 140x₁- 250x₂
Where y is the average number of units produced by an employee a day during the second month after joining the new plant, x₁ is the employee's aptitude test score, and x₂ is a dummy variable coded 1 for involuntary assignment and 0 for voluntary assignment.
For each additional aptitude test score, the average number of units produced by an employee who joined the new plant involuntarily:

Question

A manufacturing company opened a second branch plant in the same city where its first plant operates. Some of the employees had been assigned involuntarily to the new plant while some others volunteered to be transformed from the first plant to the new plant. The production manager of the new plant would like to find out whether employees who volunteered for the new plant and those who were involuntarily assigned to it differ with respect to productivity. From a random sample of 50 employees, the manager estimated the following multiple regression equation:

\hat{y}

= -2400 + 140x₁- 250x₂
Where y is the average number of units produced by an employee a day during the second month after joining the new plant, x₁ is the employee's aptitude test score, and x₂ is a dummy variable coded 1 for involuntary assignment and 0 for voluntary assignment.
For each additional aptitude test score, the average number of units produced by an employee who joined the new plant involuntarily:

Quizplus · Accepted Answer

From the given regression equation, the coefficient of the variable x₁ is 140. This means that for each additional aptitude test score, the average number of units produced by an employee who joined the new plant increases by 140, regardless of whether they were voluntarily assigned or involuntarily assigned.

A Manufacturing Company Opened a Second Branch Plant in the Same