Make a scatterplot

Make a scatterplot.

Make a scatterplot of whether or not a person has completed accident training (x-axis) and whether or not that person had an accident in the past month (y-axis). Add the least squares regression line and equation like last time. Note that scatterplot may look “odd” since the both the dependent and independent variables can only take on two values.

2.) Q2: Interpret the coefficient on the independent variable (i.e., on “Has taken Training program”). Hint: Because the dependent variable can only take on values of 0 or 1, this coefficient actually tells us the percentage point increase/decrease in the probability of an accident given that an employee has taken the training program.)

3.) Interpret the intercept of this regression line (Hint: The intercept can be interpreted as a probability as well).

4.) Make a Scatterplot of “Employee Satisfaction” (x-axis) and “Accident in the Past Month” (y-axis). Add a least squares regression line and regression equation (This scatter plot may look odd as well since both variables only take on a limited number of values).

5.)  What is the effect of a one-unit increase in employee satisfaction on the number of accidents per employee?

6.) HR suggests that increasing employee satisfaction may reduce the number of accidents. They believe offering more flexible working schedules and benefits like subsidized child care could increase employee satisfaction by 20% over current (average) levels. Suppose we have 2,000 employees total. Using your results from questions 4 and 5, calculate the expected reduction in total accidents due to implementing this program.