Operations Managers Often Use Work Sampling to Estimate How Much $E ( y ) = \beta _ { 0 } + \beta _ { 1 } x$

question 103

Essay

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 data collected for 40 randomly
selected working days. The simple linear model $E ( y ) = \beta _ { 0 } + \beta _ { 1 } x$ was fit to the data. The printouts for the analysis are given below:
TIME: $\quad y =$ Time spent (in hours) taking telephone orders during the day
ORDERS: $\quad x =$ Number of telephone orders received during the day
UNWEIGHTED LEAST SQUARES LINEAR REGRESSION OF TIME
$\begin{array}{l}\text { PREDICTOR }\\\begin{array}{l|c|c|c|c}\text { PREDICTOR } & & & & \\\text { VARIABLES } & \text { COEFFICIENT } & \text { STD ERROR } & \text { STUDENT'ST } & \mathrm{P} \\\hline \text { CONSTANT } & 10.1639 & 1.77844 & 5.72 & 0.0000 \\\text { ORDERS } & 0.05836 & 0.00586 & 9.96 & 0.0000\end{array}\end{array}$

$\begin{array}{lclc}\text { R-SQUARED } & 0.7229 & \text { RESID. MEAN SQUARE (MSE) } & 11.6175 \\\text { ADJUSTED R-SQUARED } & 0.7156 & \text { STANDARD DEVIATION } & 3.40844\end{array}$


$\begin{array}{l|r|c|c|c|c}\text { SOURCE } & \text { DF } & \text { SS } & \text { MS } & \mathrm{F} & \mathrm{P} \\\hline \text { REGRESSION } & 1 & 1151.55 & 1151.55 & 99.12 & 0.0000 \\\text { RESIDUAL } & 38 & 441.464 & 11.6175 & & \\\text { TOTAL } & 39 & 1593.01 & & &\end{array}$

CASES INCLUDED 40 MISSING CASES 0
Conduct a test of hypothesis to determine if time spent (in hours) taking telephone orders during the day and the number of telephone orders received during the day are positively linearly related. Use $\alpha = .01$ .

Understand the commitment levels required by different market entry strategies.

Comprehend the impact of a country's economic development on distribution channels.

Recognize the role of product extension and adaptation in global markets.

Understand the significance of direct investment in establishing foreign subsidiaries or divisions.

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Definitions:

Distribution Channel

A set of intermediaries or pathways through which a product or service passes until it reaches the end consumer.

Visual Aids

Tools such as charts, graphs, images, or videos used to enhance understanding or retention of information.

Sets of Data

Collections of related measurements, observations, or records often used for analysis and decision-making.

Storytelling

The act of narrating a story or stories, often used as a method to entertain, educate, or convey moral values.