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QUESTION

Management of a soft-drink bottling company has the business objectives of developing a method for allocating delivery costs to customers, Although

218                            56.8

15                          243                            60.6

16                          254                            61.2

17                          267                            58.2

18                          275                            63.1

19                          287                            65.5

20                          298                           67.3

A. Use the least- Squares method to compute the regression coefficients b(0) and b(1).

B. Interpret the meaning of b(0) and b(1) in this problem.

C. Predict the mean delivery time for 150 cases of soft drinks.

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, r^2 and explain its meaning in this problem.

F. perform a residual analysis. Is there any evidence of a pattern in the 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 95% confidence interval estimate of the mean delivery time for 150 cases of soft-drink and a 95% prediction interval of the delivery time for a single delivery of 150 cases of soft-drink.

I. what conclusions can you reach from (a)-(h) about the relationship between the number of cases and delivery time?

Customer Number of Cases (X) Delivery Time (mins) (Y)(x-ẋ)(x-ẋ)^215232.1-117.913900.4126434.8-105.911214.8137336.2-96.99389.6148537.8-84.97208.0159537.8-74.95610.01...
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