Question: A study by the Occupational Safety and Health Administration seeks to know whether the probability that an industrial plant is inspected is affected by the

A study by the Occupational Safety and Health Administration seeks to know whether the probability that an industrial plant is inspected is affected by the number of accidents at the plant. An analyst regresses whether a plant is inspected (1 = inspected) on the number of accidents resulting in a lost day of work (X). He finds
= .04 + .012X
sb = .0021 Sy|x = .19 r2 = .48 n = 320
 = 47 sx = 22
Interpret this regression. If Ace Manufacturing has 14 accidents resulting in lost work days, what can you say about whether it will be inspected?

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