08CexS_F10

08CexS_F10 - The Hong Kong University of Science &...

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ISMT 111: Business Statistics, Fall 2003 1. (a) b β 0 =12 . 679 and b β 1 =1 . 9607 (b) For each unit increase in lot size, the expected worker-hours are estimated to increase by 1 . 96. 12 . 679 represents the portion of worker-hours that is not a f ected by lot size. (c) b y i =12 . 679 + (1 . 9607)(45) = 100 . 91 (d) A lot size of 100 is outside the relevant range for the independent variable. (e) R 2 =0 . 988. So 98 . 8% of the variation in the dependent variable can be explained by the variation in the independent variable. (f) The standard error of estimate is 4 . 71. s = s SSE n 2 = s 266 . 87 14 2 =4 . 71 (g) Based on ( e )and( f ), the R 2 is very large and the standard error of estimate is quite small, so the model should be very useful for prediction of sales. (h)
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08CexS_F10 - The Hong Kong University of Science &...

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