In Any Production Process in Which One or More Workers $( y )$

question 54

Multiple Choice

In any production process in which one or more workers are engaged in a variety of tasks, the total time spent in production varies as a function of the size of the workpool and the level of output of the various activities. In a large metropolitan department store, it is believed that the number of man-hours worked $( y )$ per day by the clerical staff depends on the number of pieces of mail processed per day $\left( x _ { 1 } \right)$ and the number of checks cashed per day $\left( x _ { 2 } \right)$ . Data collected for $n = 20$ working days were used to fit the model:
$$E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 }$$
A partial printout for the analysis follows:


Interpret the $95 \%$ prediction interval for $y$ shown on the printout.

• A) We expect to predict number of man-hours worked per day to within an amount between \(47.224\) and \(119.126\) of the true value.
• B) We are \(95 \%\) confident that the mean number of man-hours worked per day falls between \(47.224\) and \(119.126\) for all days in which 7,781 pieces of mail are processed and 644 checks are cashed.
• C) We are \(95 \%\) confident that the number of man-hours worked per day falls between \(47.224\) and 119.126.
• D) We are \(95 \%\) confident that between \(47.224\) and \(119.126\) man -hours will be worked during a single day in which 7,781 pieces of mail are processed and 644 checks are cashed.

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Definitions:

Residual Value

The estimated amount that an asset is expected to realize upon the end of its useful life after all depreciation or amortization has been accounted for.

Market Value

The current price at which an asset or service can be bought or sold in the market.

Depreciation

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, reflecting the loss of value as the asset is used.

Capitalized

The process of recording a cost or expense as an asset on the balance sheet, rather than immediately expensing it, typically to spread the cost over its useful life.