Regression problem using statistical relations with predictors and a dependent variable. Attachments in MS Word.

Part of a CFO’s job is to determine the direction of the company and
which divisions/projects should be expanded. This CFO selects a sample
of 30 projects and wants to find out about the relationship between
Profit (Y measured in 1000’s) per project and number of Employee Hours
(EmployHrs) involved in each project (measured in 100’s), length of
time to complete the project (Months) measured in months, whether the
project was completed on time (Ontime=1 if on time and 0 otherwise), and
then the type of construction project (Retail, Manufacturing, or
Government). Retail =1 if it was a retail project, 0 otherwise.
Manufacturing =1 if it was a manufacturing project and 0 otherwise,
Government is omitted.

She ran the following regression. Use the results to answer the
questions.

Predictor Coef StDev T P

Constant 1.1447 0.2898 3.95 0.001

EmployHrs 0.6323 0.2096 3.30 0.046

Months -0.003012 0.004765 -0.63 0.533

Ontime 0.18035 0.06517 2.77 0.011

Retail 0.01104 0.07153 0.15 0.879

Manufact -0.4429 0.1031 -4.30 0.000

S = 0.1722 R-Sq = 71.1% R-Sq(adj) = 65.1%

Analysis of Variance

Source DF SS MS F P

Regression 5 1.75342 0.35068 11.82 0.000

Residual Error 24 0.71206 0.02967

Total 29 2.46548

1A.Write out the regression equation

1B. Test (Hypotheses, Tcomputed, Ttable, Statistical Conclusion, Pvalue)
whether employee hours affects profits.

1C. Interpret EACH coefficient in the model above (but not the
constant).

1D. Test (Hypotheses, Tcomputed, Ttable, Statistical Conclusion, Pvalue)
whether this is a useful regression.

1E. What useful information can the CFO gather from this regression? The
CFO should do what as a result of this regression?

1F. Predict profits for a retail project that had 200 employee hours,
lasted for 6 months and ended on time. Write out what the number means.

1G. Interpret adjusted R2.