Terry and Associatesis a specialized medical testing center Denver, Colorado. One ofthe firm's major sources of revenue is a lot used to test forelevated of lead in the blood. Workers in auto body shops, those inthe lawn care industry, and commercial house painters are exposedto large amounts of lead and thus must be randomly tested. It isexpensive to conduct the test, so the kits are delivered on demandto a variety of locations throughout the Denver area.
Kathleen Terry, the owner, is concernedabout setting appropriate costs for each delivery. To investigate,Ms. Terry gathered information on a random sample 0f 46 recentdeliveries. Factors thought to be related to the cost of deliveringa kit were:
Prep Thetime in minutes between when the customized order is phoned intothe company and when it is ready for delivery.
Delivery The actual travel time in minutes from
Terry"s plant to the customer.
Mileage The distance in miles from Terry's plantto the customer.
Cost Prep Delivery Mileage
32.60 10 51 20
23.37 11 33 12
31.49 6 47 19
19.31 9 18 8
28.35 8 88 17
28.17 5 35 16
20.42 7 23 9
21.53 9 21 10
27.55 7 37 16
23.37 9 25 12
17.10 15 15 6
27.06 13 34 15
15.99 8 13 4
17.96 1212 4
25.22 6 41 14
24.29 3 28 13
22.76 4 26 10
28.17 9 54 16
19.68 7 18 8
25.15 6 50 13
20.36 9 19 7
21.16 3 19 8
25.95 10 45 14
18.76 12 12 5
18.76 8 16 5
24.49 7 35 13
19.56 2 12 8
22.63 8 30 11
21.16 5 13 8
21.16 11 20 8
19.68 5 19 8
18.76 5 14 7
17.98 5 11 4
23.37 10 25 12
25.22 6 32 14
27.06 8 44 16
21.06 9 28 9
22.63 8 31 11
19.68 7 19 8
22.76 8 28 10
21.96 13 18 9
25.95 10 32 14
26.14 8 44 15
24.29 8 34 13
24.35 3 33 12
1. Write theregression equation.
2. Interpret theregression constant and partial regression coefficients.
3. Test the overallsignificant of the regression model
4. Is there anyindication of multicollinearity.
