Question: A company believes that there is a linear relationship between an employee’s hours of overtime for a particular week and the number of defective parts produced by that employee during that week. It therefore monitors the work of a sample of 15 employees, with results as shown in the table below.

As the plant engineer, you performed a regression analysis on the above data to examine the possible dependency of overtime (the independent variable) upon the number of defective parts (the dependent variable). The subsequent pages are the outputs (tabular and graphical) of such an analysis using the Regression capabilities of Excel (T eels/Data Analysis/Regression).

1. Are the company’s fears well founded? Provide a thorough explanation, including the regression model you are proposing, the statistical significance of the model, the correct interpretation of the model, any additional studies you believe necessary, and other considerations you believe important in understanding the proposed model.
   
2. It is now the pro-holiday rush and your plant management is studying the probable impact of instituting a work week with 25 hours of overtime. What is the 95% confidence interval for the mean number of defects per worker likely to be produced at this level of overtime?
3. Your shop floor supervisor is an extremely sharp individual and is concerned with not only the average number of defects per worker, but with the number of defects produced by each worker. Provide a 95% prediction interval for the number of defects likely to be produced by a specific worker when working 25 hours of overtime.

Price: $2.99

Solution: The downloadable solution consists of 5 pages
Deliverable: Word Document