Check Assumptions / Conditions for Inferences in Regression

question 20

Multiple Choice

Check assumptions / conditions for inferences in regression.
-An operations manager was interested in determining if there is a relationship between
The amount of training received by production line workers and the time it takes for them
To trouble shoot a process problem. A sample of recently trained line workers was
Selected. The number of hours of training time received and the time it took (in minutes)
For them to trouble shoot their last process problem were captured. A regression equation
Was fit to the data and the following residual plot obtained. Based on this plot, we can
Say

• A) that the nearly normal condition is satisfied.
• B) that the nearly normal condition is not satisfied.
• C) that the equal spread condition is satisfied.
• D) that the linearity condition is not satisfied.
• E) that the independence condition is not satisfied.

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Definitions:

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus its depreciation.

Variable Costs

Costs that change in proportion to the level of production or sales activity, such as raw materials and direct labor.

Production Time

The total time required to manufacture a product, from the start of production to the final product being ready for sale.

Sales Mix

The combination of different products or services that a company sells, typically analyzed to understand their relative contributions to overall sales.