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

question 24

Multiple Choice

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. $$\begin{array} { | l | l | } \hline \text { Variable } & \text { Description } \\\hline Y & \text { number of days absent last fiscal year } \\\hline x _ { 1 } & \text { comrnuting distarnce (in miles) } \\\hline x _ { 2 } & \text { employee's age (in years) } \\\hline x _ { 3 } & \text { single-parent household } ( 0 = \text { no, } 1 = \text { yes } ) \\\hline x _ { 4 } & \text { length of employment at PpP (in years) } \\\hline x _ { 5 } & \text { shift } ( 0 = \text { day } 1 = \text { night) } \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | c | } \hline & \text { Coefficients } & \text { Standard Error } & t \text { Statistic } & p \text {-value } \\\hline \text { Intercept } & 6.594146 & \mathbf { 3 . 2 7 3 0 0 5 } & \mathbf { 2 . 0 1 4 7 0 7 } & \mathbf { 0 . 0 4 7 6 7 1 } \\\hline \boldsymbol { x } _ { 1 } & - 0.18019 & 0.141949 & - 1.26939 & 0.208391 \\\hline \mathbf { x } _ { 2 } & 0.268156 & 0.260643 & 1.028828 & 0.307005 \\\hline \boldsymbol { x } _ { 3 } & - 2.31068 & 0.962056 & - 2.40182 & 0.018896 \\\hline \mathbf { x } _ { 4 } & - 0.50579 & 0.270872 & - 1.86725 & 0.065937 \\\hline \boldsymbol { x } _ { 5 } & \mathbf { 2 . 3 2 9 5 1 3 } & 0.940321 & 2.47736 & 0.015584 \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | c | c | } \hline & \mathrm { df } & \text { SS } & \text { ME } & F & p \text {-value } \\\hline \text { Repression } & 5 & 279.358 & 55.8716 & 4.423755 & \mathbf { 0 . 0 0 1 5 3 2 } \\\hline \text { Residual } & 67 & 846.2036 & 12.6299 & & \\\hline \text { Total } & 72 & 1125.562 & & & \\\hline\end{array}$$ $$\begin{array} { | c | c | c | } \hline R = 0.498191 & R ^ { 2 } = 0.248194 & \text { Adj } R ^ { 2 } = 0.192089 \\\hline \mathrm { s } _ { \mathrm { e } } = 3.553858 & n = 73 & \\\hline\end{array}$$ 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.

---

Definitions:

Goods in Process Inventory

An account in the inventory accounting that represents the cost of unfinished goods in the production process at a particular time.

Factory Overhead

The indirect costs associated with manufacturing, not directly tied to specific units produced, such as maintenance, utilities, and management salaries.