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1. Management of a soft-drink bottling company has the business objective of developing a method for allocating delivery costs to customers. Although one cost clearly
1. Management of a soft-drink bottling company has the business objective of developing a method for allocating delivery costs to customers. Although one cost clearly relates to travel time within a particular route, another variable cost reflects the time required to unload the cases of soft drink at the delivery point. To begin, management decided to develop a regression model to predict deliverv time based on the number of cases delivered. A sample of 20 deliveries within a territory was selected. The delivery times and the number of cases delivered were organized in the following table (and stored in): Number Delivery Number Delivery of Time of Time 1 52 32.1 1 1 161 43.0 2 64 34.8 12 184 49.4 3 73 36.2 13 202 57.2 4 85 3?.8 14 218 56.8 5 95 3?.8 15 243 60.6 6 103 39.? 16 254 61.2 7 1 16 38.5 17 267 53.2 8 121 41.9 18 275 63.1 9 143 44.2 19 287 65.6 10 '57 47.1 20 298 67.3 a. Use the least-squares method to compute the regression coefficients b0 and bl. b. Interpret the meaning of on and b] in this problem. c. Predict the delivery time for 150 cases of soft drink. d. 8110qu you use the model to predict the delivery time for a customer who is receiving 500 cases of soft drink? Why or why not?I e. Determine the coefcient of determination, r2, and explain its meaning in this problem. 1'. Perform a residual analysis- Is there any evidence of a pattern in the residuals? Explain. 3. At the 0.05 level of significance, is there evidence of a linear relationship between delivery time and the number of cases delivered
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