Create a Confidence Interval for the Slope of a Regression $= 30.7 - 1.84$

question 8

Multiple Choice

Create a confidence interval for the slope of a regression equation.
-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 15 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. The regression output
Is shown below. The 95% confidence interval for the slope of the regression equation is The regression equation is
Trouble Shooting $= 30.7 - 1.84$ Training

$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\ \text { Constant } & 30.729 & 1.023 & 30.03 & 0.000 \\ \text { Training } & - 1.8360 & 0.1376 & - 13.35 & 0.000 \end{array}$
$$S = 1.43588 \quad \mathrm { R } - \mathrm { Sq } = 93.28 \quad \mathrm { R } - \mathrm { Sq } ( \operatorname { adj } ) = 92.7 \%$$

• A) -4 to 0.32
• B) -1.9776 to -1.7224
• C) -2.1332 to -1.5388
• D) -3.611 to -0.069
• E) None of the above.

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Definitions:

Service Department

A department that does not directly engage in operating activities; rather, it provides services or assistance to the operating departments.

Equivalent Unit

A measure used in cost accounting to express the amount of work done by an incomplete process on units of production in terms of fully completed units.

Process Costing

A costing methodology used in industries where production is continuous and costs are assigned to units of output through the manufacturing process.

First-In, First-Out

An inventory accounting method where the oldest items (first-in) are sold or used first (first-out), affecting the cost of goods sold and ending inventory valuation.