In Problem 12.6 on page 424, the owner of a moving company wanted to predict labor hours
Question:
In Problem 12.6 on page 424, the owner of a moving company wanted to predict labor hours based on the cubic feet moved. Perform a residual analysis for these data (stored in Moving). Based on these results, evaluate whether the assumptions of regression have been seriously violated.
In Problem 12.6
The owner of a moving company typically has his most experienced manager predict the total number of labor hours that will be required to complete an upcoming move. This approach has proved useful in the past, but the owner has the business objective of developing a more accurate method of predicting labor hours. In a preliminary effort to provide a more accurate method, the owner has decided to use the number of cubic feet moved as the independent variable and has collected data for 36 moves in which the origin and destination were within the borough of Manhattan in New York City and in which the travel time was an insignificant portion of the hours worked. The data are stored in Moving.
Step by Step Answer:
Business Statistics A First Course
ISBN: 9780321979018
7th Edition
Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan