TABLE 12-12
The manager of the purchasing department of a large savings 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 x 10-15.

-Referring to Table 12-12, 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 12-12
The manager of the purchasing department of a large savings 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 x 10-15.

-Referring to Table 12-12, 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 slope coefficient is less than 0.01, indicating that there is sufficient evidence of a linear relationship between the number of loan applications and the time needed to record them at a 1% level of significance. Therefore, the statement is true.

TABLE 12-12 The Manager of the Purchasing Department of a Large Savings