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, you can be 95% confident that the mean amount of time needed to record one additional loan application is somewhere between 0.0109 and 0.0143 hours.

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, you can be 95% confident that the mean amount of time needed to record one additional loan application is somewhere between 0.0109 and 0.0143 hours.

Quizplus · Accepted Answer

The 95% confidence interval for the slope coefficient (labeled as "Variable" in the table) is given as (0.0109, 0.0143). Since the slope coefficient represents the increase in completion time for each additional application recorded, the confidence interval indicates the range of values within which the true increase in completion time is likely to fall with 95% confidence. Therefore, the statement is true.

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