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Choose the one alternative that best completes the statement or answers the question.
-A manufacturer of boiler drums wants to use regression to predict the number of man-hours needed to erect drums in the future. The manufacturer collected a random sample of 35 boilers and measured the following two variables:
MANHRS: yy = Number of man-hours required to erect the drum
PRESSURE: x1=\mathrm { x } _ { 1 } = Boiler design pressure (pounds per square inch, i.e., psi)
Initially, the simple linear model E(y) =β1+β1x1\mathrm { E } ( \mathrm { y } ) = \beta _ { 1 } + \beta _ { 1 \mathrm { x } 1 } was fit to the data. A printout for the analysis appears below:
UNWEIGHTED LEAST SQUARES LINEAR REGRESSION OF MANHRS
 PREDICTOR  VARIABLES  COEFFICIENT  STD ERROR  STUDENT’ST P CONSTANT 1.880590.583803.220.0028 PRESSURE 0.003210.001632.170.0300\begin{array}{c|c|c|c|c}\text { PREDICTOR } & & & & \\\text { VARIABLES } & \text { COEFFICIENT } & \text { STD ERROR } & \text { STUDENT'ST } & \mathrm{P} \\\hline \text { CONSTANT } & 1.88059 & 0.58380 & 3.22 & 0.0028 \\\text { PRESSURE } & 0.00321 & 0.00163 & 2.17 & 0.0300\end{array}

 R-SQUARED 0.4342 RESID. MEAN SQUARE (MSE)  4.25460 ADJUSTED R-SQUARED 0.4176 STANDARD DEVIATION 2.06267\begin{array} { l l l l } \text { R-SQUARED } & 0.4342 & \text { RESID. MEAN SQUARE (MSE) } & 4.25460 \\ \text { ADJUSTED R-SQUARED } & 0.4176 & \text { STANDARD DEVIATION } & 2.06267 \end{array}

 SOURCE  DF  SS  MS FP REGRESSION 1111.008111.0085.190.0300 RESIDUAL 34144.6564.25160 TOTAL 35255.665\begin{array}{l|r|c|c|c|c}\text { SOURCE } & \text { DF } & \text { SS } & \text { MS } & \mathrm{F} & \mathrm{P} \\\hline \text { REGRESSION } & 1 & 111.008 & 111.008 & 5.19 & 0.0300 \\\text { RESIDUAL } & 34 & 144.656 & 4.25160 & & \\\text { TOTAL } & 35 & 255.665 & & &\end{array}

Give a practical interpretation of the coefficient of determination, R2\mathrm { R } ^ { 2 } .


Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

S.T.E.P. Approach

A strategic planning model that stands for Social, Technological, Economic, and Political - considering these factors when analyzing external environments for strategic planning.

Open-Book Management

A management strategy where employees are provided with company financial information to involve them in decision-making processes.

Share

An individual portion of a company's capital, represented by a stock, that entitles its holder to a proportion of the corporation's earnings and assets.

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