Work-From-Home (WFH) is a furniture manufacturer and seller company based in Heilbronn, Germany. WFH opened recently during the pandemic times when several companies requested their employees to work from home to protect them and prevent the illness spread across the country.

WFH has been selling a small and easy-to-assemble desk model named HomyC4 for 6 months by now, and recently noticed an increased number of claims from customers on this specific model.

Billy, in charge of customer services, gathered the following information during the last 30 days.

Day Damage Rate Units with claims Units Sold Carrier

1 0.05 4 77 A

2 0.02 1 52 A

3 0.08 11 137 A

4 0.14 3 21 A

5 0.2 5 25 B

6 0 0 17 B

7 0.15 29 199 A

8 0.05 6 126 B

9 0.07 1 14 A

10 0.12 2 17 B

11 0.06 8 130 B

12 0.06 4 71 B

13 0.08 2 24 A

14 0.04 2 47 A

15 0.02 2 81 B

16 0.1 5 50 A

17 0.04 2 55 B

18 0.31 4 13 A

19 0.06 8 128 B

20 0.07 2 27 B

21 0.07 5 73 A

22 0.02 2 82 A

23 0.5 2 4 A

24 0.04 7 164 A

25 0.04 1 23 A

26 0.18 2 11 B

27 0.18 7 40 B

28 0.2 2 10 B

29 0 0 24 B

30 0.14 18 126 A

The owner of WFH Mr. Roberts hires you as an intern to support him on the regression analysis once

After discussing the received claims and preparing your model, you decide together that the Units Sold in a day is the most likely best predictor of the Units with Claims that same day. To confirm and understand the relation between both variables, create a regression model and inform Roberts:

What's the adjusted R2of this model?Units with Claims=f(Units Sold)

Provide your answer with three decimals (e.g., if your R2is equal to 71.37%, input 0.714).

What's the model intercept value?

Question 2

After analyzing your initial results, you notice that 2 possible carriers are involved in the logistics of products with registered claims. You decide to incorporate that as a second independent variable to your model from Question 1.

Tip: We suggest you to use a binary variable to include the two carriers into the model.

How much of the variation on the claim rate is explained by this new model based on the coefficient of determination (R2)?

Question 3

A new delivery of your HomyC4 desk is about to leave your warehouse. After checking its documents, you know it corresponds to 170.0 Units Sold and will be carried by Carrier B. Using the model you just created for Question 2, How many Units with Claims do you forecast for this delivery?