2. The sample data shown below have been collected from a firm's accounting and production records to provide labor hours information about the firm's shipping department.

Week	Labor (Hours)	Pounds Shipped (1,000s)	Percentage of Units shipped by Truck	Average Shipment Weight
1	100	5.1	90	20
2	85	3.8	99	22
3	108	5.3	58	19
4	116	7.5	16	15
5	92	4.5	54	20
6	63	3.3	42	26
7	79	5.3	12	25
8	101	5.9	32	21
9	88	4.0	56	24
10	71	4.2	64	29
11	122	6.8	78	10
12	85	3.9	90	30
13	50	3.8	74	28
14	114	7.5	89	14
15	111	4.5	90	21
16	110	6.0	40	20
17	100	8.1	55	16
18	82	2.9	64	19
19	85	4.0	35	23
20	116	4.8	58	25

SUMMARY OUTPUT

	Labor (Hours)	Pounds Shipped (1,000s)	Percentage of Units shipped by Truck	Average Shipment Weight
Mean	93.90	5.06	59.80	21.35
Standard Error	4.32	0.33	5.64	1.15
Median	96.00	4.65	58.00	21.00
Mode	85.00	3.80	90.00	20.00
Standard Deviation	19.32	1.48	25.21	5.15
Sample Variance	373.25	2.20	635.33	26.56
Kurtosis	-0.19	-0.44	-0.70	-0.07
Skewness	-0.56	0.70	-0.24	-0.30
Range	72.00	5.20	87.00	20.00
Minimum	50.00	2.90	12.00	10.00
Maximum	122.00	8.10	99.00	30.00
Sum	1878.00	101.20	1196.00	427.00
Count	20.00	20.00	20.00	20.00
Largest(1)	122.00	8.10	99.00	30.00
Smallest(1)	50.00	2.90	12.00	10.00

Regression Statistics
Multiple R	0.77
R Square	0.59
Adjusted R Square	0.51
Standard Error	13.47
Observations	20.00
ANOVA
	df	SS	MS	F	Significance F
Regression	3	4187.97	1395.99	7.69	0.0021
Residual	16	2903.83	181.49
Total	19	7091.80
	Coefficients	Standard Error	t Stat	P-value
Intercept	102.58	35.28	2.91	0.01
Pounds Shipped (1,000s)	4.74	2.12	2.42	0.03
Percentage of Units shipped by Truck	0.08	0.13	0.61	0.55
Average Shipment Weight	-1.75	0.81	-2.18	0.04
RESIDUAL OUTPUT
Observation	Predicted Labor (Hours)	Residuals
1	98.82	1.18
2	89.87	-4.87
3	99.00	9.00
4	113.12	2.88
5	93.15	-1.15
6	76.04	-13.04
7	84.91	-5.91
8	96.31	4.69
9	83.95	4.05
10	76.78	-5.78
11	123.41	-1.41
12	75.65	9.35
13	77.42	-27.42
14	120.60	-6.60
15	94.23	16.77
16	99.16	10.84
17	117.28	-17.28
18	88.11	-6.11
19	84.05	0.95
20	86.15	29.85

2

a) Using the summary information, write an overview of the data. (5 Points)

b) Use the information from the "Regression Statistics" to comment on the following:1. What variables are related to labor hours and how are they related? (5 Points)2. What percentage of labor cost is explained by the variables in the model, and what adjustment would you make to improve the model. (10 Points)