ESSAY. Write your answer in the space provided or on a separate sheet of paper.
ID: 3234405 • Letter: E
Question
ESSAY. Write your answer in the space provided or on a separate sheet of paper. The printout shows the results of a first-order regression analysis relating the sales price y of a product the time in hours x_1 and the cost of raw materials x_2 to make the product. What is the percentage of variability in price y is explained by Time and Material? Which the variables above is important and should stay in the Model? All in all, is the model as a whole good or should all variables be removed and replaced by a constant? Explain?Explanation / Answer
(a) The percantage of variability explained = adjusted R squared = 99.03%
(b) The important variables are the ones with p-value less than 0.05, i.e., Materials
(c) Since the overall significant F is 0.0048, which is less than 0.05, the overall model is significant.
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