SCENARIO 12-12
the Manager of the Purchasing Department of a Large

question 106

Multiple Choice

SCENARIO 12-12
The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan
application.Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded.Below is the regression output: $$\begin{array}{l}\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.9447 \\\text { R Square } & 0.8924 \\\text { Adjusted R } & 0.8886 \\\text { Square } & \\\text { Standard } & 0.3342 \\\text { Error } & \\\text { Observations } & 30 \\\hline\end{array}\\\text { ANOVA }\\\begin{array} { l r r r r r } \hline & { \text { df } } & { \text { SS } } & { \text { MS } } & \text { F } & \text { Significance } F \\\hline \text { Regression } & 1 & 25.9438 & 25.9438 & 232.2200 & 4.3946 \mathrm { E } - 15 \\\text { Residual } & 28 & 3.1282 & 0.1117 & & \\\text { Total } & 29 & 29.072 & & & \\\hline\end{array}\\\begin{array} { l r r r r r r } \hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 0.4024 & 0.1236 & 3.2559 & 0.0030 & 0.1492 & 0.6555 \\\text { Applications } & 0.0126 & 0.0008 & 15.2388 & 0.0000 & 0.0109 & 0.0143 \\\text { Recorded } & & & & & & \\\hline\end{array}\end{array}$$ 12-46 Simple Linear Regression Simple Linear Regression 12-47
-Referring to Scenario 12-12, the 90% confidence interval for the mean change in the amount of time needed as a result of recording one additional loan application is

• A)wider than [0.1492, 0.6555].
• B)narrower than [0.1492, 0.6555].
• C)wider than [0.0109, 0.0143].
• D)narrower than [0.0109, 0.0143].

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Definitions:

Consumer Preferences

The subjective tastes and desires that dictate the choices a consumer makes among different products and services.

Professors of Finance

Academic professionals specializing in finance theory, financial market analysis, and investment strategies.

Professors of Economics

Academics specialized in the study of economics, typically working in universities or colleges, conducting research, and teaching students about economic theories and principles.

Supply

The overall quantity of a particular product or service that is accessible to buyers.