Statistics for Business and Economics (13th Edition)
13th Edition
ISBN: 9780134506593
Author: James T. McClave, P. George Benson, Terry Sincich
Publisher: PEARSON
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Chapter 11.6, Problem 11.95ACI
Predicting quit rates In manufacturing The reasons given by workers for quitting their jobs generally tall into one of two categories: (1) worker quits to seek or take a different job. or (2) worker quits to withdraw from the labor force Economic theory suggests that wages and quit rates are related The next table lists quit rates (quits per 100 employees) and the average hourly wage in a sample of 15 manufacturing industries. Consider the simple linear regression of quit rate yon average wage x.
- a. Do the data present sufficient evidence to conclude that average hourly wage rate contributes useful information for the prediction of quit rates’ What does your model suggest about the relationship between quit rates and wages?
- b. Find a 95% prediction interval for the quit rate in an industry with an average hourly wage of $9.00. Interpret the result.
- c. Find a 95% confidence interval for the mean quit rate for industries with an average hourly wage of $9.00. Interpret this result.
| Industry | Quit Rate, y | Average Wage, x |
| 1 | 1.4 | S 8 20 |
| 2 | .7 | 10 35 |
| 3 | 2.6 | 6 18 |
| 4 | 3.4 | 5.37 |
| 5 | 1.7 | 994 |
| 6 | 1.7 | 9.11 |
| 7 | 1.0 | 1059 |
| 8 | .5 | 13.29 |
| 9 | 2.0 | 7.99 |
| 10 | 3.8 | 5.54 |
| 11 | 2.3 | 7.50 |
| 12 | 1.9 | 643 |
| 13 | 1.4 | 8.83 |
| 14 | 1.8 | 10.93 |
| 15 | 2.0 | 8.80 |
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Chapter 11 Solutions
Statistics for Business and Economics (13th Edition)
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