Maurren Salido

Problem 2

In a manufacturing process the assembly line speed (feet per minute) was thought to affect the
number of defective parts found during the inspection process. To test this theory, managers
devised a situation in which the same batch of parts was inspected visually at a variety of line
speeds. They collected the following data:

No. of Defective Parts

Line Speed (ft/min)
Found

20 21

20 19

40 15

30 16

60 14

40 17
1. Develop a scatter chart with line speed as the independent variable. What does the scatter chart
indicate about the relationship between line speed and the number of defective parts found?

The scatter chart indicates that there is a negative relationship between the line speed and the
number of defective parts found.

2. Use the data to develop an estimated regression equation that could be used to predict the number
of defective parts found, given the line speed. What is the estimated regression model?

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.859726954
R Square 0.739130435
Adjusted R Square 0.673913043
Standard Error 1.489090764
Observations 6

ANOVA
df SS MS F Significance F
Regression 1 25.13043478 25.13043478 11.3333333 0.028134748
Residual 4 8.869565217 2.217391304
Total 5 34

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 22.17391304 1.652745896 13.41640786 0.00017852 17.58515479 26.7626713 17.58515479 26.7626713
Linear Speed -0.147826087 0.043910891 -3.366501646 0.02813475 -0.269742265 -0.02590991 -0.26974227 -0.025909908

Estimated Regression Equation: 𝛾 = 22.174 + −0.1478𝑥

Estimated Regression Model: 𝑅 2 = 0.7391
3. Test whether each of the regression parameters 𝛽0 and 𝛽1 is equal to zero at a 0.01 level of
significance. What are the correct interpretations of the estimated regression parameters? Are these
interpretations reasonable?

According to the result gathered in number 2, the p -value is 0.0281 which is higher than the level
of significance. That is why we accept the hypotheses that 𝛽1 is equals to 0. And we conclude that
there is no significant relationship between the line speed and the number of defective parts found.

The estimated regression parameter shows that if the line speed is zero, the number of defect part
found is 22.1739. This result is unreasonable because there is no observation in the sample data
with a linear speed near 0.

4. How much of the variation in the number of defective parts found for the sample data does the
model you estimated in part (b) explain?

The result gathered in number 2 states that 𝑅 2 = 0.7391, that is why our estimated regression
model in part (b) explains that there are approximately 74% variation in the number of defective
parts found in the sample.
 Problem 3

Jensen Tire & Auto is deciding whether to purchase a maintenance contract for its new computer
wheel alignment and balancing machine. Managers feel that maintenance expense should be
related to usage, and they collected the following information on weekly usage (hours) and annual
maintenance expense (in hundreds of dollars).

Weekly Annual Maintenance

Usage (hours) Expense ($100s)

13 17.0

10 22.0

20 30.0

28 37.0

32 47.0

17 30.5

24 32.5

31 39.0

40 51.5

38 40.0
 1. Develop a scatter chart with weekly usage hours as the independent variable. What does the scatter
chart indicate about the relationship between weekly usage and annual maintenance expense?

The scatter chart indicates that there is a positive relationship between weekly usage and annual
maintenance expense.

2. Use the data to develop an estimated regression equation that could be used to predict the annual
maintenance expense for a given number of hours of weekly usage. What is the estimated
regression model

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.925298195
R Square 0.856176749
Adjusted R Square 0.838198842
Standard Error 4.249618385
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 860.0509486 860.0509 47.62383 0.0001244
Residual 8 144.4740514 18.05926
Total 9 1004.525

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 10.52795688 3.744867282 2.811303 0.022797 1.89227744 19.163636 1.892277437 19.1636363
Weekly Usage (hours) 0.95344044 0.138159709 6.901002 0.000124 0.63484358 1.2720373 0.634843579 1.2720373
 Estimated Regression Equation: 𝛾 = 10.5279 + 0.9534𝑥
Estimated Regression Model: 𝑅 2 = 0.8561

3. Test whether each of the regression parameters 𝛽0 and 𝛽1 is equal to zero at a 0.05 level of
significance. What are the correct interpretations of the estimated regression parameters? Are these
interpretations reasonable?

Based on the result from the data gathered, the p-value is 0.000124 lower than the level of
significance. We accept that 𝛽1 = 0 and reject the null hypothesis. And we can conclude that there
is a significant relationship between the weekly usage of machine and annual maintenance
expense.

The estimated regression equation shows that if the weekly usage is zero, the annual maintenance
expense is 10.5279. The interpretations are unreasonable because it is impossible to have zero
weekly usage and at the same time gather a 10.5279 annual maintenance expense.

4. How much of the variation in the sample values of annual maintenance expense does the model
you estimated in part (b) explain?

The result gathered in number 2 states that 𝑅 2 = 0.8561, that is why our estimated regression
model in part (b) explains that there are approximately 86% variation in the sample values of
annual maintenance expense.

5. If the maintenance contract costs $3,000 per year, would you recommend purchasing it? Why or
why not?

Yes because $30,000 is a good price for the maintenance program.

 Problem 5

A sociologist was hired by a large city hospital to investigate the relationship between the number
of unauthorized days that employees are absent per year and the distance (miles) between home
and work for the employees. A sample of 10 employees was chosen, and the following data were
collected.

Distance to Work (miles) No. of Days Absent

1 8

3 5

4 8

6 7

8 6

10 3

12 5

14 2

14 4

18 2
 1. Develop a scatter chart for these data. Does a linear relationship appear reasonable? Explain.

The linear relationship between the distance to work and the number of days absent is negative
linear relationship.

2. Use the data to develop an estimated regression equation that could be used to predict the
number of days absent given the distance to work. What is the estimated regression model?
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.843121469
R Square 0.710853812
Adjusted R Square 0.674710539
Standard Error 1.289414821
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 32.69927536 32.69928 19.667665 0.002182936
Residual 8 13.30072464 1.662591
Total 9 46

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 8.097826087 0.808822137 10.01187 8.413E-06 6.232678894 9.96297328 6.23267889 9.96297328
Distance to Work (miles) -0.344202899 0.077613652 -4.43482 0.0021829 -0.5231803 -0.1652255 -0.5231803 -0.1652255

Estimated Regression Equation: 𝛾 = 8.0978 + −0.3442𝑥

Estimated Regression Model: 𝑅 2 = 0.7108
 (For numbers 3 and 4)
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.843121469
R Square 0.710853812
Adjusted R Square 0.674710539
Standard Error 1.289414821
Observations 10

ANOVA
df SS MS F Significance F
Regression 1 32.69927536 32.69928 19.667665 0.002182936
Residual 8 13.30072464 1.662591
Total 9 46

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%
Intercept 8.097826087 0.808822137 10.01187 8.413E-06 6.232678894 9.96297328 5.38391453 10.8117376
Distance to Work (miles) -0.344202899 0.077613652 -4.43482 0.0021829 -0.5231803 -0.1652255 -0.6046268 -0.08377904

3. What is the 99% confidence interval for the regression parameter 𝛽1? Based on this interval,
what conclusion can you make about the hypotheses that the regression parameter 𝛽1 is equal to
zero?

The 99% confidence interval for the regression parameter 1 result is - 0.6046 and -0.0838. Since
this interval does not include zero, we reject the hypothesis that 1 = 0. We conclude that there is
a relationship between distance to work and number of absences. According to the data above the
estimate is that a one-mile increase in the distance to work corresponds to a decrease of 0.3442
days absent.

4. What is the 99% confidence interval for the regression parameter 𝛽0 ? Based on this interval,
what conclusion can you make about the hypotheses that the regression parameter 𝛽0 is equal to
zero?
The 99% confidence interval for the regression parameter 0 result is 5.3839 and 10.8117. Since
there is no observation in the sample data with a distance to work near zero, we can say that this
confidence interval and the test of the hypothesis that 0 = 0 are meaningless.
5. How much of the variation in the sample values of number of days absent does the model you
estimated in part (b) explain?

The result gathered in number 2 states that 𝑅 2 = 0.7108, that is why our estimated regression
model in part (b) explains that there are approximately 71% variation in the sample values of
number of days absent.