Hakika had just transitioned into a different department in the company. Hoping to make a good...

 

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Hakika had just transitioned into a different department in the company. Hoping to make a good impression on her boss, Hakika said she was going to model the inspection costs over the past 12 months in an effort to better control them and predict them going forward. Her boss seemed skeptical but was looking forward to her analysis. Data for the previous 12 months is as follows for the inspection costs, along with two possible cost drivers: inspection hours and number of inspections. Inspection Hours 440 245 156 602 280 148 745 720 480 503 343 392 Number of Inspections 145 104 75 237 160 88 139 179 234 215 183 128 Inspection Costs $56,070 41,265 39,040 96,540 65,700 55,890 105,430 132,400 123,760 99,700 89,775 53,550 (d) If both models are acceptable, run a multiple regression model with both independent variables. Evaluate the validity of this multiple regression model, write out the formal cost function, and explain whether this model is better than either of the simple regression models on its own. (Round answers to 2 decimal places, e.g. 15.25.) Goodness of fit Significance of slope Economic plausibility Y = $ Good Fit Significant eTextbook and Media Plausible X1 + $ Assume the following variables: X₁ = inspection hours, and X₂ = number of inspections X2 + $ This model is ✓better than either of the simple regression models on their own. Save for Later Last saved 19 hours ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: 0 of 4 used Submit Answer Hakika had just transitioned into a different department in the company. Hoping to make a good impression on her boss, Hakika said she was going to model the inspection costs over the past 12 months in an effort to better control them and predict them going forward. Her boss seemed skeptical but was looking forward to her analysis. Data for the previous 12 months is as follows for the inspection costs, along with two possible cost drivers: inspection hours and number of inspections. Inspection Hours 440 245 156 602 280 148 745 720 480 503 343 392 Number of Inspections 145 104 75 237 160 88 139 179 234 215 183 128 Inspection Costs $56,070 41,265 39,040 96,540 65,700 55,890 105,430 132,400 123,760 99,700 89,775 53,550 (d) If both models are acceptable, run a multiple regression model with both independent variables. Evaluate the validity of this multiple regression model, write out the formal cost function, and explain whether this model is better than either of the simple regression models on its own. (Round answers to 2 decimal places, e.g. 15.25.) Goodness of fit Significance of slope Economic plausibility Y = $ Good Fit Significant eTextbook and Media Plausible X1 + $ Assume the following variables: X₁ = inspection hours, and X₂ = number of inspections X2 + $ This model is ✓better than either of the simple regression models on their own. Save for Later Last saved 19 hours ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: 0 of 4 used Submit Answer

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a Goodness of fit Significant of slope Significant Economic plausibility Plausible Y Inspection ... View the full answer