Q1.

A soft drink bottler is interested in predicting the amount of time required by the route driver to service the vending machine in an outlet. An industrial engineer has suggested to collect data on delivery time ( Y ) and two most important variable affecting delivery time (number of cases of product stocked ( X 1 ), the distance walked by the route driver ( X 2 )).

i 1 2
3 4 5 6 7 8 9 10 11 12 13

Y 16.68 11.50 12.03

14.88 13.75 18.11 8.00 17.83 79.24 21.50 40.33 21.00 13.50

X1

X2

7 3 3 4 6 7 2 7 30 5 16 10 4

560 220 340 80 150 330 110 210 1460 605 688 215 255

i 14 15
16 17 18 19 20 21 22 23 24 25

Y 19.75 24.00 29.00

15.35 19.00 9.50 35.10 17.90 52.32 18.75 19.83 10.75

X1

X2

6 9 10 6 7 3 17 10 26 9 8 4

462 448 776 200 132 36 770 140 810 450 635 150

(a) Fit a multiple linear regression model relating delivery time to these regressors. Interpret the regression coefficients. (b) Test the hypothesis H 0 : 1 2 = 0 . Use = 0.05 . (c) Construct 95% confidence interval on the mean delivery time for an outlet requiring x1 = 8 cases and the distance x2 = 275 feet. 2. Consider the multiple regression model fit to the delivery time data in problem Q1. (a) Construct a normal probability plot of the residuals. Does there seem to be any problem with the normality assumption? (b) Construct and interpret a plot of the residuals versus the predicted response. (c) Also construct plots of residuals versus each of the regressor variables. Do these plots imply that the regressor is correctly specified?

3. Suggest an appropriate transformation to eliminate the problem encountered in Q2 (a) if any and refit the model accordingly. 4. Reconsider the multiple regression model fit to the delivery time data in problem Q1.Identify leverage and influential observations if any.