# Regression Coefficient Values

Road Construction is considering two suppliers to deliver 10,000 concrete pillars for their next construction project. The two suppliers are geographically dispersed and the management believes the proximity to Road Construction plays an important role in delivering the pillars on time. Another important characteristic is the scale of the business of the suppliers and Unicom Management categorizes the scale of business as large or small.

Suppose a DOE analysis will be conducted in order to understand the relationships between the CTQ (on-target shipment) and the factors that affect the performance of the CTQ. Create a table showing the factors (at least two) and their correspondent levels (at least two). HINT: In order to answer the question you will need to make assumptions about some of the factor levels.

Road management needs to identify the reasons for a target shipment to get delayed. By collecting data from the suppliers, they identified the following information on Y (On-target shipment) and Xs (independent variables):

Baseline Scenario

Y: On-target shipment (delay in days)

The team held a brainstorming session to list all the possible cause of variations in shipment. The following were the list of reasons:

Inventory issues: Delays due to shortage of concrete and other raw materials.

Set up issues: Delays due to changes in the setup of the machines.

Job scheduling issues: Delays due to inefficiencies in scheduling jobs.

Using the above information a regression analysis has been carried out.

The regression equation is

Predictor Coef SE Coef T P

Constant -0.4859 0 0.2905 -1.67 0.099

inventory 2.7092 0 0.6844 3.96 0

Setup 3.1815 0 0.7201 4.42 0

Job 2.77 1 1.549 1.79 0.077

S=2.406

R-sq=78.7%

r-sq(adj)=66.3%

Questions

Write the regression line (function) using dependent and independent variables.

What information can be interpreted from the regression analysis? Hint: Use Regression coefficient values to construct your answer.

#### Solution Preview

Please see the attachment.

Regression coefficient values

Road Construction is considering two suppliers to deliver 10,000 concrete pillars for their next construction project. The two suppliers are geographically dispersed and the management believes the proximity to Road Construction plays an important role in delivering the pillars on time. Another important characteristic is the scale of the business of the suppliers and Unicom Management categorizes the scale of business as large or small.

Suppose a DOE analysis will be conducted in order to understand the relationships between the CTQ (on-target shipment) and the factors that affect the performance of the CTQ. Create a table showing the factors (at least two) and their correspondent levels (at least two). HINT: In order to answer the question you will need to make ...

#### Solution Summary

The solution provides step by step method for the calculation of regression analysis and interpretation of regression coefficients. Formula for the calculation and Interpretations of the results are also included.