Managementof a soft-drink bottling company has the business objective of developing amethod for allocating delivery costs to customers. Although one cost clearlyrelates to travel time within a particular route, another variable cost reflectsthe time. To begin, management decided to develop a regression model to predictdelivery time based on the number of cases delivered. A sample of 20 deliverieswithin a territory was selected. The delivery times and the number of casesdelivered were organized in the following table.

Customers	Number of Cases	Delivery Time (minutes)
1	52	32
2	64	35
3	73	36
4	85	38
5	95	38
6	103	40
7	116	39
8	121	42
9	143	44
10	157	47
11	161	43
12	184	49
13	202	57
14	218	57
15	243	61
16	254	61
17	267	58
18	275	63
19	287	66
20	298	67

a)What is the dependent variable? Why? Label it as Y and find itsmean value

b)What is the independent variable? Why?

c)Construct a scatter plot. Hint: see page 430

d)For these data, b₀ = 124.84 and b₁ = 0.14. Interpretthe meaning of b₀ and b₁ in this problem.

e)What is the predicted line in this problem? Hint: See page 43 or 432

f)Predict the mean delivery time for 150cases of soft drink?

Question 2

IfSSR = 66 and SST = 88:

a. Determine thecoefficient of determination, r², and interpret its meaning. Show your work

b. Determine the standarderror of estimate. Show your work

c. How useful do you thinkthis regression model is for predicting sales? Explain