A manufacturing manager uses a dexterity test on 20 current employees in order to predict watch production
Question:
A manufacturing manager uses a dexterity test on 20 current employees in order to predict watch production based on time to completion (in seconds). A portion of the data is shown below.
Time (seconds)......................Watches per Shift
513.......................................................23
608.......................................................19
⋮............................................................⋮
437.......................................................20
a. Estimate the linear model: Watches = β0 + β1 Time + ε. Interpret the slope coefficient. If the time required to complete the dexterity test is 550 seconds, what is the predicted watch production?
b. Estimate the logarithmic model: Watches = β0 + β1 In (Time) + ε. Interpret the slope coefficient. If the time required to complete the dexterity test is 550 seconds, what is the predicted watch production?
c. Which model provides a better fit? Explain.
Step by Step Answer:
Business Statistics Communicating With Numbers
ISBN: 9780078020551
2nd Edition
Authors: Sanjiv Jaggia, Alison Kelly