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

question 24

Short Answer

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: $\quad y =$ Time spent (in hours) taking telephone orders during the day
ORDERS: $\quad x _ { 1 } =$ Number of telephone orders received during the day
WEEK: $\quad x _ { 2 } = 1$ weekday, 0 if Saturday or Sunday
Consider the following 2 models:
Model 1: $E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } \left( x _ { 1 } \right) ^ { 2 } + \beta _ { 3 } x _ { 2 } + \beta _ { 4 } x _ { 1 } x _ { 2 } + \beta _ { 5 } \left( x _ { 1 } \right) ^ { 2 } x _ { 2 }$
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) Compare the two models with a nested model $\mathrm { F }$ -test, i.e., test the null hypothesis, $H _ { 0 } : \beta _ { 2 } = \beta _ { 4 } = \beta _ { 5 } = 0$ .
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) Always choose the more parsimonious of the two models, i.e., the model with the fewest number of $\beta$ -coefficients.

• A) Compare the two models with a nested model \(\mathrm { F }\)-test, i.e., test the null hypothesis, \(H _ { 0 } : \beta _ { 2 } = \beta _ { 4 } = \beta _ { 5 } = 0\).
• 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) Always choose the more parsimonious of the two models, i.e., the model with the fewest number of \(\beta\)-coefficients.

Familiarize with the structure and function of T accounts in accounting.

Understand how transactions are recorded in financial statements.

Comprehend the order and grouping of balance sheet accounts.

Recognize the treatment of cash transactions in accounting.

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Definitions:

Measure

The action or process of quantifying or assessing a quantity, dimension, or capacity, often using specific tools or units of measurement.

Behavior Pattern

Repeated actions or reactions that are characteristic of an individual across different situations.

Scientific Method

A systematic procedure for collecting and analyzing evidence that involves observation, hypothesis formation, experimentation, and conclusion drawing.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of human experience, cognition, and emotion.