BASIC BUSINESS STATISTICS ANALYSIS 2022

BASIC BUSINESS
STATISTICS
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BASIC BUSINESS STATISTICS
Introduction
The objective of the given study is to determine the impact of level of employee
education on the level of absenteeism with regards to employees at Delta Wire
manufacturers. In this regards, the company executives share opposite opinions with some
believing that higher level of employees education would lower absenteeism while the others
take an opposite stance. Sample data of 20 employees has been presented for statistical
analysis in order to indicate which viewpoint is supported.
Statistical Analysis of Sample Data
The two variables of interest in the given analysis are hours of education and sick
days. A correlation analysis has been carried out between these variables with level of
education being the independent variable and sick days being the dependent variable. The
following results are obtained.
The above scatter plot tends to imply that there is a negative relationship between the hours
of education and sick days. This is apparent from the downward slope of the best fit line
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BASIC BUSINESS STATISTICS
(Hillier, 2016). Also, the correlation coefficient between the two variables has been found
and reported below.
The magnitude of the correlation coefficient is 0.7113 which implies that extent of
relationship between the two variables is moderately strong (Hair et. al., 2015).
A linear regression model has been obtained in Excel with hours of education as the
independent variable and sick days as the dependent variable. The relevant output is pasted
below.
The equation for the linear regression is given below.
Sick days = 7.16 – 0.07*Hours of Education
The intercept coefficient of the above regression model is 7.16. This would be the sick
days for employees when hours for education are zero. The slope coefficient for the given
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