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

question 10

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

Definitions:

Creditors

Creditors are individuals, businesses, or financial institutions that lend money or extend credit, expecting to be repaid with interest.

Fixed Incomes

Earnings that do not change over time, such as those from bonds or rents, which provide consistent income but may lose purchasing power over time.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing economic data, especially labor market activity, working conditions, and price changes.

Unemployed

The status of being without a paid job but being available for and seeking work.

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

Definitions:

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