SCENARIO 12-12
the Manager of the Purchasing Department of a Large

Multiple Choice

SCENARIO 12-12
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: $$\begin{array}{l}\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.9447 \\\text { R Square } & 0.8924 \\\text { Adjusted R } & 0.8886 \\\text { Square } & \\\text { Standard } & 0.3342 \\\text { Error } & \\\text { Observations } & 30 \\\hline\end{array}\\\text { ANOVA }\\\begin{array} { l r r r r r } \hline & { \text { df } } & { \text { SS } } & { \text { MS } } & \text { F } & \text { Significance } F \\\hline \text { Regression } & 1 & 25.9438 & 25.9438 & 232.2200 & 4.3946 \mathrm { E } - 15 \\\text { Residual } & 28 & 3.1282 & 0.1117 & & \\\text { Total } & 29 & 29.072 & & & \\\hline\end{array}\\\begin{array} { l r r r r r r } \hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 0.4024 & 0.1236 & 3.2559 & 0.0030 & 0.1492 & 0.6555 \\\text { Applications } & 0.0126 & 0.0008 & 15.2388 & 0.0000 & 0.0109 & 0.0143 \\\text { Recorded } & & & & & & \\\hline\end{array}\end{array}$$ 12-46 Simple Linear Regression Simple Linear Regression 12-47
-Referring to Scenario 12-12, the estimated mean amount of time it takes to record one additional loan application is

A) 0.4024 fewer hours
B) 0.4024 more hours
C) 0.0126 fewer hours
D) 0.0126 more hours