Problem 3 Management of a soft-drink bottling company wants to develop 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. A sample of 20 deliveries within a territory was selected. The delivery times and the number of cases delivered were recorded in the following table and also appear on the respective SPSS file: Customer Number of cases Delivery Time 52 32.1 64 34.8 73 36.2 85 37.8 ONOURWN 95 37.8 103 39.7 116 38.5 121 41.9 9 143 44.2 10 157 47.1 11 161 43 12 184 49.4 13 202 57.2 14 218 56.8 15 243 60.6 16 254 61.2 17 267 58.2 18 275 63.1 19 287 65.6 20 298 67.3 Develop a regression model to predict delivery time, based on the number of cases delivered. A. Use the least-squares method to compute the regression coefficients. (attach regression output at the end of your homework) B. Interpret the regression coefficients. C. Predict the delivery time for 150 cases of soft drink. (from SPSS output or by hand) D. Should you use the model to predict the delivery time for a customer who is receiving 500 cases of soft drink? Why or why not? E. Determine the coefficient of determination and explain its meaning in this problem. (from SPSS) F. Perform a residual analysis. Is there any evidence of a pattern in the residuals? Explain. (attach graphs from SPSS at the end of your homework and discuss below which assumption might be violated. G. At the 0.05 level of significance, is there evidence of a linear relationship between time and the number of cases delivered? (you can use p-value method or critical value method from SPSS output). 3