Customer | Number of cases | Delivery Time |
1 | 52 | 32.1 |
2 | 64 | 34.8 |
3 | 73 | 36.2 |
4 | 85 | 37.8 |
5 | 95 | 37.8 |
6 | 103 | 39.7 |
7 | 116 | 38.5 |
8 | 121 | 41.9 |
9 | 143 | 44.2 |
10 | 157 | 47.1 |
11 | 161 | 43 |
12 | 184 | 49.4 |
13 | 202 | 57.2 |
14 | 218 | 56.8 |
15 | 243 | 60.6 |
16 | 254 | 61.2 |
17 | 267 | 58.2 |
18 | 275 | 63.1 |
19 | 287 | 65.6 |
20 | 298 | 67.3 |
Management of a soft-drink bottling company wants to develop amethod for allocating delivery costs to customers. Although onecost clearly relates to travel times within a particular route,another variable cost reflects the time required to unload thecases of soft drink at the delivery point. A sample of 20deliveries within a territory was selected. The delivery time andthe number of cases delivered were recorded. Develop a regressionmodel to predict delivery time based on the number of casesdelivered. Use the least-square method to calculate the regressioncoefficients, b0 and b1. Showing all formulas and equations a)Write your regression equation. b) Determine the coefficient ofdetermination, r2, and explain it meaning in this problem. c)Perform a residual analysis. Is there any evidence of patterns inthe residuals? Explain.