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

question 78

Short Answer

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 p-value of the measured F-test statistic to test whether the number of loan applications recorded affects the amount of time is _.

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Definitions:

Transportation Costs

Expenses associated with the movement of goods or people from one location to another, often impacting the final price of products and services.

Just-In-Time Manufacturing

A production method where materials and products are made or delivered only as needed, reducing inventory costs and increasing efficiency.

Just-In-Time

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Procurement Process

The series of activities undertaken by an organization to acquire goods or services.