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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: = -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:
Contingent Liabilities
Possible obligations that may arise in the future due to past events, depending on the occurrence of certain uncertain events.
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Income received by a company for goods or services yet to be delivered or performed.
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Current liabilities on a company’s balance sheet, representing taxes collected from customers on behalf of governmental authorities which are yet to be remitted.
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