1. How well are absent days and age correlated? Can this correlation be generalized to the entire workforce?
2. What is the forecasting equation for absent days using age as a predictor variable?
3. What percentage of the variability in absent days can be explained through knowledge of age?
4. Is there a significant relation between absent days and age? In answering this question, use proper statistical procedures to support your answer.
5. Suppose a newly hired person is 24 years old. How many absent days would you forecast for this person during the fiscal year?
6. Should Bill McGone proceed to take a large sample of company employees based on the preliminary results of his sample?
7. Has an effective forecasting method been developed?
Ace Manufacturing Company employs several thousand people in the manufacture of keyboards, equipment cases, and cables for the small-computer industry. The president of Ace has recently become concerned with the absentee rate among the company's employees and has asked the personnel department to look into this matter. Personnel realizes that an effective method of forecasting absenteeism would greatly strengthen its ability to plan properly.