TABLE 13-12
The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan application. Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded. Below is the regression output:

Note: 4.3946E-15 is 4.3946 ×

-Referring to Table 13-12, there is sufficient evidence that the amount of time needed linearly depends on the number of loan applications at a 1% level of significance.

Question

TABLE 13-12
The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan application. Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded. Below is the regression output:
  
Note: 4.3946E-15 is 4.3946 ×

-Referring to Table 13-12, there is sufficient evidence that the amount of time needed linearly depends on the number of loan applications at a 1% level of significance.

Quizplus · Accepted Answer

The p-value for the coefficient of the number of loan applications is less than 0.01, indicating that there is sufficient evidence to reject the null hypothesis that there is no linear relationship between the number of loan applications and the time needed to record them. Therefore, we can conclude that there is a linear relationship at a 1% level of significance.

TABLE 13-12 The Manager of the Purchasing Department of a Large Saving