•A supply chain manager suspects that there is a linear relationship between the

Question

•A supply chain manager suspects that there is a linear relationship between the number of truck departures from her distribution center and the average time it takes for the trucks to be loaded.

–To test this, she took a random sample of 100 days during the previous year and compiled a data set including average loading time and number of daily departures.

–A regression of average loading time on number of daily departures yielded the following partial results:

•SSR = 9745.82; SST = 104972.2

•What is…

–Fcalc?

–Fcrit?

–R2?

Explanation / Answer

The value of R2 ?is found by dividing Sum of Square of Residues by Total Sum of Squares

So, therefore, we have,

R?2 ?= SSR / SST

   = 9745.82 / 104972.2

   = 0.0928

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