Basic Business Statistics E270 Homework Assignment 12-Module 12 1. You are the manager of a beer distribution center and you want to determine a method for allocating beer delivery costs to the customers. Although one cost clearly relates to travel time within a particular route, another variable cost reflects the time required to unload the cases of beer at the delivery point. You want to develop a model to predict this cost, so you collect a random sample of 20 deliveries within your territory. The unloading time and the number of cases are shown in the Excel data file for this assignment, under the tab Delivery. a. Create the appropriate scatter plot and calculate the coefficient of correlation. Comment on the results. Does it appear a linear relationship exists? b. Use the least-squares method to compute the regression coefficients bo and by. c. Interpret the meaning of bo and by in this problem. d. Predict the mean unloading time for 150 cases of beer. e. Should you use the model to predict the delivery time for a customer who is receiving 500 cases of beer? Why or why not? f. Determine the coefficient of determination, R2, and explain its meaning in this problem. g. Perform a complete residual analysis. Does the analysis support all the assumptions required for a valid model? Explain. h. At the 0.05 level of significance, is there evidence of a linear relationship between unloading time and the number of cases of beer? i. Construct a 95% confidence interval estimate of the mean time to unload 150 cases of beer and a 95% prediction interval of the unloading time for a single delivery of 150 cases of beer. Explain your results. j. What conclusions can you reach from the analysis above regarding the relationship between unloading time and the number of cases of beer delivered? k. If your delivery cost is $100 per hour, what variable cost for unloading 150 cases of beer should you add to that customers invoice? Explain your thought process. G8 xv fx B C D E 1 A Customer Number of Cases Delivery Time 2 1 52 32.1 3 2 64 34.8 4 3 73 36.2 5 4 85 37.8 6 5 95 37.8 7 6 103 39.7 8 116 38.5 9 8 00 121 41.9 10 9 143 44.2 11 10 157 47.1 12 11 161 43 13 12 184 49.4 14 13 202 57.2 15 14 218 56.8 16 15 243 60.6 17 16 254 61.2 18 17 267 58.2 19 18 275 63.1 20 19 287 65.6 21 20 298 67.3 25 28 29 30 222222222222 23