A. What percentage of the variation in cost is explained by the information avai

Question

A. What percentage of the variation in cost is explained by the information available at the time the bid is placed?

B. Approximately how closely can we predict cost if we know the other variables?

C. Find the predicted cost of a project involving $9000 in labor and $20,000 in materials.

D. Is the F test significant? What does this tell you?

E. Do materials have a significan impact on cost?

Thank you :)

Table 12.5.12 Correlations: Labor Material Labor 0.684 0.713 0.225 Regression Equation Cst- 13975+1.18(Labor)+1.64(Material) Coeff StDev T-Ratio Predictor Constant Labor Material 13975 1.1806 1.6398 4286 0.211 0.2748 3.26 5.59 5.97 0.004 s-3860 R-sq=79.7% R-sq(adj)=77.8% Analysis of Variance Source Regression DF MS 1286267776 327775808 1614043648 643133888 14898900 43.17 Total 24 SEQ SS Source Labor Material 755914944 530352896

Explanation / Answer

A. The percentage of the variation in cost is explained by the information available at the time the bid is placed is R-sq=79.7

B. Fitted equation is , cost=13975+1.1806*Labor+1.6398*Material

C.The  predicted cost of a project involving $9000 in labor and $20,000 in materials is,

cost=13975+1.1806*9000+1.6398*20000=57396.4

D.Here ,p-value corresponding to F-test is 0 <0.05, we reject H0 at 5% level of significance & conclude that atleast one variable is contributing significantly to the cost variable.

E..Here ,p-value corresponding to Material variable is 0 <0.05, we reject H0 at 5% level of significance & conclude Material variable is significant..

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