Basic Business Statistics
14th Edition
ISBN: 9780134684840
Author: BERENSON, Mark L., Levine, David M., Szabat, Kathryn A.
Publisher: Pearson,
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Chapter 13, Problem 74PS
Management of a soft-drink botting company has the business objective of developing a method for allocating delivery costs to customers. Although one cost clearly relates to travel time within a particular route, another variable cost reflects the time required to unload the cases of soft drink at the delivery point. To begin, management decided to develop a regression model to predict delivery time based on the number of cases delivered. A sample of 20 deliveries within a territory was selected. The delivery times and the number of cases delivered were organized in the following table and stored in Delivery.
a. Use the least-squares method to compute the regression coefficients
b. Interpret the meaning of
c. Predict the
d. Should you use the model to predict the delivery time for a customer who is receiving 500 cases of soft drink? Why or why not?
e. Determine the coefficient of determination,
f. Perform a residual analysis. Is there any evidence of a pattern in the residuals? Explain.
g. At the 0.05 level of significance, is there evidence of a linear relationship between delivery time and the number of cases delivered?
h. Construct a
i. What conclusions can you reach from (a) through (h) about the relationship between the number of cases and delivery time?
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Chapter 13 Solutions
Basic Business Statistics
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