An accountant for a large department store would like to develop a model to pred
ID: 3350586 • Letter: A
Question
An accountant for a large department store would like to develop a model to predict the amount of time it takes to process invoices. Data are collected from the 30 working days and the number of invoices processed and completion time (in hours) are used to obtain the following PHStat output.
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.945
R Square
0.892
Adjusted R Square
0.889
Standard Error
0.334
Observations
30
ANOVA
df
SS
MS
F
Significance F
Regression
1
25.944
25.944
232.220
4.3946E-15
Residual
28
3.128
0.112
Total
29
29.072
Coefficients
Standard Error
t Stat
P-value
Intercept
0.402
0.124
3.256
0.003
Invoices Processed
0.013
0.001
15.239
0.000
The accountant is expected to work an additional 0.013 hours (less than a minute) to process an additional invoice. True or false:
Select one:
True
False
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.945
R Square
0.892
Adjusted R Square
0.889
Standard Error
0.334
Observations
30
ANOVA
df
SS
MS
F
Significance F
Regression
1
25.944
25.944
232.220
4.3946E-15
Residual
28
3.128
0.112
Total
29
29.072
Coefficients
Standard Error
t Stat
P-value
Intercept
0.402
0.124
3.256
0.003
Invoices Processed
0.013
0.001
15.239
0.000
Explanation / Answer
The statement that the accountant is expected to work an additional 0.013 hours (less than a minute) to process an additional invoice is True.
This is because the coefficient of Invoices processed is 0.013 which means that in order to process an additional invoice, the accountant would have to work an additional 0.013 hours.
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