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(35 pt) Watson & Watson Repair Inc. provides maintenance service for a large apa

ID: 2948843 • Letter: #

Question

(35 pt) Watson & Watson Repair Inc. provides maintenance service for a large apartment complex in downtown Saint Petersburg, Florida. The managers are evaluating the possibility of hiring another maintenance person due to the increase of maintenance calls. Rafael Roddick and Andy Nadal are currently responsible for maintenance tasks. To investigate “what” drives Repair Time and be able to hire the best candidate, the managers hire you as statistician to conduct a regression analysis. As dependent variable you have time of repair for each, Rafael and Andy. You also have time since last maintenance.

Explanation / Answer

(1) The R-squared value is given to be as 0.614. This indicates that 61.4% of the variation in the dependent variable is explained by the linear regression of the Repairtime variable on the Repairperson variable. An R-squared value of around 60% indicates that the fit of the model is moderate. It is not good, but it is not bad as well.

(2) In this model, the independent variable is the Repairperson variable. It's p-value has come out to be 0.007. Since this p-value is less than alpha = 0.05 (level of significance), we can say that this variable is significant in the model. Also, the constant or intercept term of the model has a p-value of 0.000. This is less than alpha = 0.05 and this also indicates that the intercept term is significant in the model.