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# Regression, Least squares and Correlation Coefficients

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The following table shows the number of workdays absent based on the length of employment in years.

Number of workdays absent 2 3 3 5 7 7 8

Length of employment (years) 5 6 9 4 2 2 0

a. What is the independent variable? What is the dependent variable?
b. Using Megastat or Excel derive the least squares equation (LSE).
C. Interpret the two estimate coefficients of the LSE.
d. Calculate the coefficients of correlation and determination and interpret their values.
e. Is there evidence showing a correlation between Number of Workdays Absent and Length of Employment?

##### Solution Summary

This solution identifies the independent and dependent variable and derives the least squares equation by a graphical representation of the data. It then uses the LSE to interpret two estimate coefficients, calculate the coefficients of correlation and also conducts a regression analysis to determine if a relationship between number of workdays absent and length of employment.

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