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Absenteeism is a serious employment problem in most countries. It is estimated that absenteeism reduces potential output by more than 10%. Two economists launched a research project to learn more about the problem. They randomly selected 100 organizations to participate in a 1-year study. For each organization, they recorded the average number of days absent per employee and several variables thought to affect absenteeism. The following data were recorded: Column 1: Average number of days absent per employee Column 2: Average employee wage Column 3: Percentage of part-time employees Column 4: Percentage of unionized employees Column 5: Availability of shiftwork (1 = yes; 0 = no) Column 6: Union–management relationship (1 = good; 0 = not good) a. Conduct a regression analysis. b. Can we infer at the 5% significance level that the availability of shiftwork is related to absenteeism? c. Is there enough evidence at the 5% significance level to infer that in organizations where the union–management relationship is good, absenteeism is lower? (The authors are grateful to James Fong and Diana Mansour for developing this exercise. The data are based on M. Chadhury and I. Ng, “Absenteeism Predictors,” Canadian Journal of Economics, August 1992.)
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