Determine the coefficient of determination r2 and interpret


The owner of an intra -city moving company typically has his most experienced manager predict the total number of labor hours that will be required to complete an upcoming move. This approach had proved useful in the past, but he would like to be able to develop a more accurate method of predicting the labor hours by using the amount of cubic feet moved. In a preliminary effort to provide a more accurate method, he has collected data for 36 moves, in which the travel time was an insignificant portion of the labor hours worked.
The data are in the Excel file, MOVING.xls downloadable from File or click Companion Website at www.peasronhighered.com/levine, and go to the Excel Date Files link.

Hours

Feet

Large

Elevator

24.00

545

3

Yes

13.50

400

2

Yes

26.25

562

2

No

25.00

540

2

No

9.00

220

1

Yes

20.00

344

3

Yes

22.00

569

2

Yes

11.25

340

1

Yes

50.00

900

6

Yes

12.00

285

1

Yes

38.75

865

4

Yes

40.00

831

4

Yes

19.50

344

3

Yes

18.00

360

2

Yes

28.00

750

3

Yes

27.00

650

2

Yes

21.00

415

2

No

15.00

275

2

Yes

25.00

557

2

Yes

45.00

1028

5

Yes

29.00

793

4

Yes

21.00

523

3

Yes

22.00

564

3

Yes

16.50

312

2

Yes

37.00

757

3

No

32.00

600

3

No

34.00

796

3

Yes

25.00

577

3

Yes

31.00

500

4

Yes

24.00

695

3

Yes

40.00

1054

4

Yes

27.00

486

3

Yes

18.00

442

2

Yes

62.50

1249

5

No

53.75

995

6

Yes

79.50

1397

7

No

a) Set up a scatter diagram.

b) Assuming a linear relationship, find the regression coefficients, b0, b1, and its regression equation.

c) Interpret the meaning of the slope b1 in this problem.

d) Predict the labor hours for moving 500 cubic feet.

e) What factors besides the cubic feet moved might affect labor hours?

f) Determine the coefficient of determination, r2, and interpret its meaning.

g) Find the standard error of the estimate.

h) How useful do you think this regression model is for labor hours?

i) Determine if the assumption of normality is violated by using the normal probability plot for residuals.

j) At the 0.05 level of significance, is there evidence of a linear relationship between the numbers of cubic feet moved and labor hours?

k) Set up a 95% confidence interval estimate of the population slope, β1.

l) Set up a 95% confidence interval estimate of the average labor hours for all moves of 500 cubic feet.

m) Set up a 95% confidence interval of the labor hours of an individual move that has 500 cubic feet.

n) Explain the difference in the results obtained in (l) and (m).

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Basic Statistics: Determine the coefficient of determination r2 and interpret
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