You obtain the following regression statistics for the relationship between defect rate and volume a


Question: You obtain the following regression statistics for the relationship between defect rate and volume at one of your plants. You have a random sample of results from 160 shifts at the plant.

Model R
R Square
Adjusted
R Square
Std. Error of the Estimate
1 .740 .548 .545 4.92
Model Sum of Squares df Mean Square F Sig.
1 Regression Residual Total 4647.124 3829.839 8476.963 1 158 159 4647.124 24.239 191.717 .000
Model Unstandardized Coefficients Standardized Coefficients t Sig.
B Std. Error Beta
1 (Constant) VOLUME -97.073 .027 7.819 .002 .740 50.995 13.846 .000 .000

a. What are the null and alternative hypotheses?

b. What is the population of interest? What is the sample?

c. On the basis of the output, what can you conclude about the null hypothesis?

d. Can you reject the null hypothesis that the slope is 0?

e. Can you reject the mull hypothesis that there is no linear relationship between the dependent and independent varaibales?

f. Can you reject the null hypothesis that the population correlation coefficient is 0?

g. What would you predict the defeat rate to be on a day when the volume is 4200 units? What would you predict the average defect rate to be for all days with production volumes of 4200?

h. In what way do the two estimates of the defect rate in question 3g differ? (Calculations not required.)

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