Question
The production levels of a finished product (produced from sheets of stainless steel) have varied quite a bit, and management is trying to devise a
The production levels of a finished product (produced from sheets of stainless steel) have varied quite a bit, and management is trying to devise a method for predicting the daily amount of finished product. The ability to predict production is useful for scheduling labor, warehouse space, shipment of raw materials, and also to suggest pricing strategy.
The number of units of the product that can be produced in a day depends on the width and density of the sheets being processed, and the tensile strength of the steel. The data are taken from 20 days of production. Observations can be found on page 2 of Excel workbook Homework
7.a. Does there exist multicollinearity between the predictor variables? (Compute the correlation matrix.)
b. Run a multiple regression analysis. Use α = 0.05.
i. How much of the variability in units produced is explained by the model?
ii. Refer to the ANOVA table and write out the hypothesis being tested, the test statistic,the critical value, the p-value and the conclusion.
iii. Write out the estimated regression equation.
iv. What independent variable(s) are statistically significant for this model? (Provide p-values)
Obs | Units of Product | Width | Density | Tensile Strength |
1 | 763 | 19.8 | 128 | 86 |
2 | 650 | 20.9 | 110 | 72 |
3 | 55 | 15.1 | 95 | 62 |
4 | 742 | 19.8 | 123 | 82 |
5 | 470 | 21.4 | 77 | 52 |
6 | 651 | 19.5 | 107 | 72 |
7 | 756 | 25.2 | 123 | 84 |
8 | 563 | 26.2 | 95 | 83 |
9 | 681 | 26.8 | 116 | 76 |
10 | 579 | 28.8 | 100 | 64 |
11 | 716 | 22 | 110 | 80 |
12 | 650 | 24.2 | 107 | 71 |
13 | 761 | 24.9 | 125 | 81 |
14 | 549 | 25.6 | 89 | 61 |
15 | 641 | 24.7 | 103 | 71 |
16 | 606 | 26.2 | 103 | 67 |
17 | 696 | 21 | 110 | 77 |
18 | 795 | 29.4 | 133 | 83 |
19 | 582 | 21.6 | 96 | 65 |
20 | 559 | 20 | 91 | 62 |
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