The manager of the purchasing department of a large saving and loan organization would like todevelop a model to predict the amount of time (measured in hours) it takes to record a loanapplication. Data are collected from a sample of 30 days, and the number of applications recorded andcompletion time in hours is recorded. Below is the regression output:Regression StatisticsMultiple RR SquareAdjusted RSquareStandard0.94470.89240.88860.3342ErrorObservations30ANOVAMSSignificancedfSS4.3946E-15Regression25.9438 25.9438232.2200Residual283.12820.1117Total2929.072CoefficientsStandardP-valueLower 95%t StatUpper 95%Error0.1492InterceptApplicationsRecorded0.40240.12363.25590.00300.65550.01430.01260.000815.23880.00000.0109

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Asked Dec 15, 2019
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Referring to the above scenario, interpret the coefficient attached to variable applications recorded:

 

 

Referring to the above scenario, interpret R Square:

 

 

Referring to the above scenario, interpret the F-statistic in the ANOVA analysis:

 

 

Referring to above scenario, predict the amount of time it would take on average to process 150 invoices:

The manager of the purchasing department of a large saving and loan organization would like to
develop a model to predict the amount of time (measured in hours) it takes to record a loan
application. Data are collected from a sample of 30 days, and the number of applications recorded and
completion time in hours is recorded. Below is the regression output:
Regression Statistics
Multiple R
R Square
Adjusted R
Square
Standard
0.9447
0.8924
0.8886
0.3342
Error
Observations
30
ANOVA
MS
Significance
df
SS
4.3946E-15
Regression
25.9438 25.9438
232.2200
Residual
28
3.1282
0.1117
Total
29
29.072
Coefficients
Standard
P-value
Lower 95%
t Stat
Upper 95%
Error
0.1492
Intercept
Applications
Recorded
0.4024
0.1236
3.2559
0.0030
0.6555
0.0143
0.0126
0.0008
15.2388
0.0000
0.0109
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The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan application. Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded. Below is the regression output: Regression Statistics Multiple R R Square Adjusted R Square Standard 0.9447 0.8924 0.8886 0.3342 Error Observations 30 ANOVA MS Significance df SS 4.3946E-15 Regression 25.9438 25.9438 232.2200 Residual 28 3.1282 0.1117 Total 29 29.072 Coefficients Standard P-value Lower 95% t Stat Upper 95% Error 0.1492 Intercept Applications Recorded 0.4024 0.1236 3.2559 0.0030 0.6555 0.0143 0.0126 0.0008 15.2388 0.0000 0.0109

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Expert Answer

Step 1

From the regression output, the coefficient of application recorded is 0.0126.

Interpretation:

The slope 0.0126 indicates that for each additional application recorded the mean amount of time will increase by 0.0126 hours.

Step 2

R-square:

The value of R-square is 0.8924.

There is 89.24% of variability in the amount of time can be explained by the number of applications recorded.

Step 3

From the regression output, the F test statistic is 232.2200 and the p-value is 0.0000.

Consider the significance level is 0.05. Here, the p-value is too small compared to s...

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