Operations Managers Often Use Work Sampling to Estimate How Much $\quad\quad y =$

question 112

Multiple Choice

Operations managers often use work sampling to estimate how much time workers spend on each operation. Work sampling-which involves observing workers at random points in time-was applied to the staff of the catalog sales department of a clothing manufacturer. The department
Applied regression to the following data collected for 40 consecutive working days:
TIME: $\quad\quad y =$ Time spent (in hours) taking telephone orders during the day
ORDERS: $\quad x _ { 1 } =$ Number of telephone orders received during the day
WEEK: $\quad\quad x _ { 2 } = 1$ weekday, 0 if Saturday or Sunday

Consider the following 2 models:

Model 1: $E ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } \left( \mathrm { x } _ { 1 } \right) ^ { 2 } + \beta _ { 3 } x _ { 2 } + \beta _ { 4 } x _ { 1 } x _ { 2 } + \beta _ { 5 } \left( x _ { 1 } \right) ^ { 2 } x _ { 2 }$
Model 2: $E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 3 } x _ { 2 }$
What strategy should you employ to decide which of the two models, the higher-order model or the simple linear model, is better?

• A) Always choose the more parsimonious of the two models, i.e., the model with the fewest number of \(\beta\)-coefficients.
• B) Compare \(R ^ { 2 }\) values; the model with the larger \(R ^ { 2 }\) will always be the better model.
• C) Compare the two models with a t-test, i.e., test the null hypothesis, \(H _ { 0 } : \beta _ { 1 } = 0\).
• D) Compare the two models with a nested model F-test, i.e., test the null hypothesis, \(H _ { 0 } : \beta _ { 2 } = \beta _ { 4 }\) \(= \beta _ { 5 } = 0\).

Understand how the Uniform Computer Information Transactions Act (UCITA) impacts software transactions.

Understand the distinction between FOB and FAS terms.

Recognize the principles of void, voidable, and good title transactions.

Distinguish between different types of sales contracts under the UCC.

---

Definitions:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product demanded, creating a balance without excess supply or demand.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand are balanced.

Pepsi

A carbonated soft drink manufactured by PepsiCo, considered one of the most recognizable beverage brands worldwide.

Coke

A carbonated soft drink that has become a globally recognized brand, or alternatively, a fuel derived from coal.