Management of a soft drink bottling company has the business objective of developing amethod for allocating delivery costs to customers. Although one cost clearly relates to traveltime within a particular route, another variable cost reflects the time required to unload thecases of soft drink at the delivery point. To begin, management decided to develop a regressionmodel to predict delivery time based on the number of cases delivered. A sample of 7 deliverieswithin a territory was selected. The delivery times and the number of cases delivered wereorganized in the following table:Customer No. of Cases DeliveryTime1142416313172841930511206162272440a) Use the least-squares method to compute the regression coefficients.b) Write down the estimated equation and interpret the meaning of the coefficients in thisproblemc) Predict the mean delivery time for 26 cases of soft drink.d) Determine the value of the extent of relationship between delivery time and number ofcases and interpret your result.e) Determine the coefficient of determination and explain its meaning in this problem.f) What variation in delivery time is not attributed to the number of casesg) At the 5% significance level, determine whether there a correlation between deliverytime and number of cases.

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Management of a soft drink bottling 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 7 deliveries within a territory was selected. The delivery times and the number of cases delivered were organized in the following table: Customer No. of Cases Delivery Time 1 14 24 2 16 31 3 17 28 4 19 30 5 11 20 16 22 7 24 40 a) Use the least-squares method to compute the regression coefficients. b) Write down the estimated equation and interpret the meaning of the coefficients in this problem c) Predict the mean delivery time for 26 cases of soft drink. d) Determine the value of the extent of relationship between delivery time and number of cases and interpret your result. e) Determine the coefficient of detemination and explain its meaning in this problem. f) What variation in delivery time is not attributed to the number of cases g) At the 5% significance level, determine whether there a correlation between delivery time and number of cases.

1st Edition

ISBN:9781680331141

Author:HOUGHTON MIFFLIN HARCOURT

Publisher:HOUGHTON MIFFLIN HARCOURT

Chapter4: Writing Linear Equations

Section: Chapter Questions

Problem 14CR