# The owner of a moving company typically has his most experienced manager predict the total number of labor hours that

## Question:

a. State the multiple regression equation for predicting labor hours, using the number of cubic feet moved and whether there is an elevator.

b. Interpret the regression coefficients in (a).

c. Predict the labor hours for moving 500 cubic feet in an apartment building that has an elevator and construct a 95% confidence interval estimate and a 95% prediction interval.

d. Perform a residual analysis on the results and determine whether the regression assumptions are valid.

e. Is there a significant relationship between labor hours and the two independent variables (cubic feet moved and whether there is an elevator in the apartment building) at the 0.05 level of significance?

f. At the 0.05 level of significance, determine whether each independent variable makes a contribution to the regression model. Indicate the most appropriate regression model for this set of data.

g. Construct a 95% confidence interval estimate of the population slope for the relationship between labor hours and cubic feet moved.

h. Construct a 95% confidence interval estimate for the relationship between labor hours and the presence of an elevator.

i. Compute and interpret the adjusted r2.

j. Compute the coefficients of partial determination and interpret their meaning.

k. What assumption do you need to make about the slope of labor hours with cubic feet moved?

l. Add an interaction term to the model and, at the 0.05 level of significance, determine whether it makes a significant contribution to the model.

m. On the basis of the results of (f) and (l), which model is most appropriate? Explain.

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## Step by Step Answer:

**Related Book For**

## Basic Business Statistics Concepts And Applications

**ISBN:** 9780132168380

12th Edition

**Authors:** Mark L. Berenson, David M. Levine, Timothy C. Krehbiel

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