The manager of the purchasing department of a large saving and loan organization

Question

The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan application. Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded. Below is the regression output:

Q1) The value of the measured t test statistic to test whether the amount of time depends linearly on the number of loan applications recorded is
A) 0.8924

B) 232.2200

C) 3.2559

D) 15.2388
Q2) The degrees of freedom for the F test on whether the number of load applications recorded affects the amount of time are
A) 29, 1

B)1, 29

C) 28, 1

D) 1, 28

Regression Statistics Multiple R R Square 0.8924 Adjusted R 0.8886 Square Standard 0.3342 Error 30 Observations ANOVA MS SS Significance 1 25.9438 25.9438 232.2200 4.3946E-15 Regression Residual 28 3.1282 0.1117 Total 29 29.072 Coefficients Standard t Stat P-value Lower 95% upper 95% Error 0.1492 0.4024 0.1236 3.2559 0.0030 0.6555 Intercept 0.0143 0.0000 0.0126 0.0008 15.2388 0.0109 Applications Recorded

Explanation / Answer

Ans - 1: From the 3rd table,

The measured t test statistic to test whether the amount of time depends linearly on the number of loan applications recorded is 15.2388

Option D is correct.

Ans - 2: From ANOVA table,

Degrees of freedom for the F test on whether the number of load applications recorded affects the amount of time are 1, 28.

Option D is correct.

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