A manufacturer of automobile spark plugs has several production facilities sprea

Question

A manufacturer of automobile spark plugs has several production facilities spread across a wide geographical area. The quality control manager at each plant budgets a certain amount of money (QC $, measured in thousands of dollars) for quality control efforts each week (maintenance and calibration of equipment, time spent on process evaluation, etc.). Each manager also determines the percentage of defective spark plugs (% DEF) produced each week. The company?s vice president of operations has collected a sample of data to determine the association between these variables. A scaerplot, fied line, and summary output for a simple regression model are provided: 6 out of 6 points 7/6/2017 Review Test Submission: Final Exam – 2016 Spring ­ INEN ... https://luonline.blackboard.com/webapps/assessment/review/review.jsp?attempt_id=_5923769_1&course_id=_89667_1&content_id=_2145239_1&outcome_id=… 3/12 An approximate 95% prediction interval for the percentage of defectives for a weekly expenditure on quality control efforts of $5500 would be given by: (Round your answer to two decimal places.)

Explanation / Answer

answer:

The equation is

%of Defectives = 12.0554-1.2045QC

Where QC is in thousands

So, For each additional $100 spent, average decrease is 1.2045% (Slope of the line)

Correct option is D

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