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The manager of a billing department of a large family practice would like to dev

ID: 3157206 • Letter: T

Question

The manager of a billing department of a large family practice would like to develop a model to predict the amount of time it takes to process invoices. Data are collected from a sample of thirty days with the following results:

column 1, day 1-30; column 2 invoices processed x; 149; 60, 188; 19; 201; 58; 77; 222; 181; 30; 110; 83; 60; 25; 173; 169; 190; 233; 289; 45; 193; 70; 241; 103; 163; 120; 201; 135; 80; 29; column 3 completion time in hours y; 2.1; 1.8; 2.3; 0.3; 2.7; 1.0; 1.7; 3.1; 2.8; 1.0; 1.5; 1.2; 0.8; 0.4; 2.0; 2.5; 2.9; 3.4; 4.1; 1.2; 2.5; 1.8; 3.8; 1.5; 2.8; 2.5; 3.3; 2.0; 1.7; 0.5

Find the regression equation describing the linear relationship between the two variables

Compute r2 and provide an interpretation.

Construct an ANOVA table and Test with an F test. Let = .05.

Test with a t test. Let = .05.

Demonstrate the equivalence of the tests in c. and d.

Please note: I have most of the spread sheet completed but want to double check my answers and having problems with the data analysis, regression

Explanation / Answer

The regression model is given as below:

Simple Linear Regression Analysis

Regression Statistics

Multiple R

0.9447

R Square

0.8924

Adjusted R Square

0.8886

Standard Error

0.3342

Observations

30

ANOVA

df

SS

MS

F

Significance F

Regression

1

25.9438

25.9438

232.2200

0.0000

Residual

28

3.1282

0.1117

Total

29

29.0720

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

0.4024

0.1236

3.2559

0.0030

0.1492

0.6555

Invoice processed

0.0126

0.0008

15.2388

0.0000

0.0109

0.0143

The correlation coefficient between two variables invoice processed and completion time in hours is given as 0.9447 which means there is a high positive or strong linear relationship or association or correlation exists between the given two variables. The coefficient of determination or the value of the R square is given as 0.8924 which means about 89.24% of the variation in the dependent variable completion time in hours is explained by the independent variable number of invoices processed.

The p-value for this ANOVA is given as 0.00 which is less than the given level of significance or alpha value 0.05 so we reject the null hypothesis that there is no any significant relationship exists between the given two variables invoice processed and completion time in hours.

Simple Linear Regression Analysis

Regression Statistics

Multiple R

0.9447

R Square

0.8924

Adjusted R Square

0.8886

Standard Error

0.3342

Observations

30

ANOVA

df

SS

MS

F

Significance F

Regression

1

25.9438

25.9438

232.2200

0.0000

Residual

28

3.1282

0.1117

Total

29

29.0720

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Intercept

0.4024

0.1236

3.2559

0.0030

0.1492

0.6555

Invoice processed

0.0126

0.0008

15.2388

0.0000

0.0109

0.0143