4 marks d using the r output determine an approximate

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[4 marks] d) Using the R output determine an approximate 95% confidence interval for the regression parameter associated with the percentage of units shipped by truck. Interpret this interval. [2 marks] e) If shipping dept. employees are paid $10/hour, how much less on average will it cost the company per week if the average number of pounds per shipment increases from 20 to 21? Assume that the pounds shipped and the percentage of units shipped by truck remain the same. Your answer is known in economics as the expected marginal cost associated with a 1 pound increase in average weight. [2 marks] f) With what approximate precision can this model be used to predict the hours of labor? [2 marks] g) Using the regression model, determine a 90% prediction interval for labor hours required if in a week the pounds shipped are 12, the percentage shipped by truck is 50% and the average shipping weight is 20. Comment on the derived interval. Why might you not be willing to believe the derived interval? [4 marks] g) Can the results of this regression analysis determine what explanatory variates cause labor hours (or cost) to increase? Explain. [2 marks] 2.
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  • Winter '13
  • Fah
  • Regression Analysis, regression model, Prediction interval, McClave, Shipping Dept

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Christopher Reinemann
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