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Stat - Assignment Chapter 13 - Use of SPSS - Multiple Regression for Business improvement 50 items

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Stat - Assignment Chapter 13 - Use of SPSS - Multiple Regression for Business improvement 50 items

Uploaded by

ameerhamza0656770
Copyright
© © All Rights Reserved
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Use of Regression for Business improvement

Assignment
Ahmed and Associates is a specialized medical testing centre in Sahiwal, Pakistan. One of
the firm’s major sources of revenue is a diagnostic kit used to test for elevated levels of lead
in the blood. Workers in industries such as auto repair shops, agricultural pesticide
application, and house painting are frequently exposed to significant amounts of lead and are
required to undergo random testing. Conducting these tests is costly, and the diagnostic kits
are delivered on demand to various locations across Sahiwal and nearby areas.
Ahmed, the owner, is concerned about setting appropriate charges for each delivery. To
investigate, he collected data from a random sample of 50 recent deliveries. The following
factors were believed to influence the delivery cost:
 Preparation Time: The time in minutes between when the customized order is
received and when it is ready for delivery.
 Delivery Time: The actual travel time in minutes from Ahmed’s facility to the
customer.
 Distance: The distance in kilometers from Ahmed’s facility to the customer.
Task Requirements:
1. Develop a Multiple Linear Regression Equation:
o Describe the relationship between the delivery cost and the three independent
variables: preparation time, delivery time, and distance.
o Evaluate whether these variables explain a reasonable amount of variation in
delivery costs.
o Estimate the delivery cost for a kit with 10 minutes of preparation, 30 minutes
of delivery, and a distance of 14 kilometers.
2. Hypothesis Testing:
o Determine if at least one of the net regression coefficients is significantly
different from zero.
o Test whether any of the independent variables can be excluded from the
model. If so, rerun the regression analysis until only significant variables
remain.
3. Report Preparation:
o Write a concise report interpreting the final regression equation and its
implications for the business.

Sample Sample
Cost Prep Delivery Mileage Cost Prep Delivery Mileage
Number Number
1 32.6 10 51 20 26 20.36 9 19 7
2 23.37 11 33 12 27 21.16 3 19 8
3 31.49 6 47 19 28 25.95 10 45 14
4 19.31 9 18 8 29 18.76 12 12 5
5 28.35 8 88 17 30 18.76 8 16 5
6 22.63 9 20 11 31 24.29 7 35 13
7 22.63 9 39 11 32 19.56 2 12 6
8 21.53 10 23 10 33 22.63 8 30 11
9 21.16 13 20 8 34 21.16 5 13 8
10 21.53 10 32 10 35 21.16 11 20 8
11 28.17 5 35 16 36 19.68 5 19 8
12 20.42 7 23 9 37 18.76 5 14 7
13 21.53 9 21 10 38 17.96 5 11 4
14 27.55 7 37 16 39 23.37 10 25 12
15 23.37 9 25 12 40 25.22 6 32 14
16 17.1 15 15 6 41 27.06 8 44 16
17 27.06 13 34 15 42 21.96 9 28 9
18 15.99 8 13 4 43 22.63 8 31 11
19 17.96 12 12 4 44 19.68 7 19 8
20 25.22 6 41 14 45 22.76 8 28 10
21 24.29 3 28 13 46 21.96 13 18 9
22 22.76 4 26 10 47 25.95 10 32 14
23 28.17 9 54 16 48 26.14 8 44 15
24 19.68 7 18 8 49 24.29 8 34 13
25 25.15 6 50 13 50 24.35 3 33 12

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