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Business Analytics Logistic Regression

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Business Analytics Logistic Regression

1. What were the reasons for high turnover at the manufacturing company?

The downturn of the US economy is one of the reasons that resulted to high employees’

turnover beyond the normal turnover rate. Before the economic downturn, the manufacturing

company had a normal turnover rate of 15%-18%; there was an upward spike of more than 30%

after the 2009 economic downturn.

High commuter distance was the main reason for high turnover rate. This is because

people willingly accepted the jobs they got at that time because the economy was poor but once

they realized that the commute distance was long and strenuous they would quit and look for

other jobs. Jeff park Minitab analysis indicated that the employees called it quits depending on

the number of miles they had to cover to get to the workplace, for example the chances of an

employee quitting increased by 18% at 12 miles.

2. How was Jeff Parks able to diagnose the cause?

Jeff Park initially examined variables such as working shifts, gender of the employees,

their salary, commute distance and their position using a sample of 32 out of 100 employees who

quit using a Minitab to determine the cause of the high attrition but did not find any statistical

differences. However, Jeff Park did not quit but still studied the raw data further and found out

that the women who previously had manufacturing experience and travelled various distances to

workplace are the ones who mostly quitted. By using Minitab, Jeff was able to determine if there

was any correlation between previous years of manufacturing, gender, the commuting distance

and whether the employee had quit or not. He was able to formulate a statistical model which

was made possible due to powerful binary logistic regression analysis of the Minitab. The

statistical model helped to forecast the most likely cause of the employee attrition.

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3. What are your recommendations that the company should do to reduce the turnover rate without

any legal challenges by the people who were not hired?

Prioritization of work-life balance; whereby the employer should consider standardizing

the working hours making it convenient for employees who travel for long distance to get to

workplace

Recognize and Motivate employees by giving them various incentives, rewards and

bonuses so as to compensate them for the strenuous commute distances to work.

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