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Regression Analysis

LINEAR REGRESSION AND CORRELATION
Please note ALL answers and explanation is to be done in EXCEL -no word documents.

Question 1: The Bardi Trucking Co. located in Cleveland Ohio, makes deliveries in the great Laes region, the southeast and the Northeast. Jim Bardi, the president, is studying the relationship between the distance a ship must travel and the length of time, in days; it takes the shipment to arrive at its destination. To investigate, Mr. Bardi selected a random sample of 20 shipments made last month. Shipping distance is the independent variable, and shipping time is the dependent variable, the results are as follows:

Shipment

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

DISTANCE IN (MILES)

656
853
646
783
610
841
785
639
762
762
862
679
835
607
665
647
685
720
652
828

Shipping Time (days)
5
14
6
11
8
10
9
9
10
9
7
5
13
3
8
7
10
8
6
10
Ques A. Determine and interpret the coefficient of determination.
QuesB. What would be the estimated shipping time for a distance of 715 miles?

Ques. 2. A sample of 12 homes sold last week in St. Paul Minnesota, is selected. The results are shown below.

Home size Selling Price Home size Selling Price
(Thousands of sq. feet) ($thousands) (Thousands of sq ft) ($Thousands)
1.4 100 1.3 110
1.3 110 0.8 85
1.2 105 1.2 105
1.1 120 0.9 75
1.4 80 1.1 70
1.0 105 1.1 95

Ques A: Determine AND INTERPRET THE COEEFICIENT OF DETERMINATION.

Quesb: What would be the estimated selling price of a home that has 1.0 thousand square feet?

PS: Any tips/pointers you can give for how to go about interpreting the coeeficient etc when it comes to linear Regression & Correlation so it's easier for me to understand?say in pointer form? Thanks

Solution Summary

Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.

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