Problem #13-1

The Bardi Trucking Co., located in Cleveland, Ohio, makes deliveries in the Great Lakes Region, the Southeast, in the
Northeast. Jim Bardi, the president, is studying the relationship between the distance a shipment must travel and the length of
time, in days; it takes the shipment to arrive at its destination. To investigate, Mr. Bardi selected a random sample of 20
shipments made last month. Shipping distance is the independent variable, and shipping time is the dependent variable. The
results are as follows:

Distance Shipping time

Shipment (miles), x (days), y xy x2 y2
1 656 5 3,280 430,336 25
2 853 14 11,942 727,609 196
3 646 6 3,876 417,316 36
4 783 11 8,613 613,089 121
5 610 8 4,880 372,100 64
6 841 10 8,410 707,281 100
7 785 9 7,065 616,225 81
8 639 9 5,751 408,321 81
9 762 10 7,620 580,644 100
10 762 9 6,858 580,644 81
11 862 7 6,034 743,044 49
12 679 5 3,395 461,041 25
13 835 13 10,855 697,225 169
14 607 3 1,821 368,449 9
15 665 8 5,320 442,225 64
16 647 7 4,529 418,609 49
17 685 10 6,850 469,225 100
18 720 8 5,760 518,400 64
19 652 6 3,912 425,104 36
20 828 10 8,280 685,584 100
Sums 14,517 168 125,051 10,682,471 1,550
a. Determine and interpret the coefficient of determination.

Coefficient of Correlation, r = [n(xy) - (x)(y) ] / sqrt[[n(x2)-(x)2][n(y2) - (y)2]]

r = [20(125,051) - (14,517)(168) ] / sqrt[[20(10,682,471)-(14517)2][20(1550) - (168)2]]

r = 62,164/89,818.82
r = 0.6921

Coefficient of determination = r2 = (0.6921)2 = 0.4790 = 47.90%

This means that 47.9% of the total variation is explained by the regression line, while
the remaining 52.1% of the total variation is unexplained.

b. What would be the estimated shipping time for a distance of 715 miles?

y' = a + bx

a = [(y)(x2) - (x)(xy)] / [ n(x2) - (x)2 ]

a = [(168)(10,682,471) - (14,517)(125,051)] / [ 20(10,682,471) - (14,517)2 ]

a = -20,710,239 / 2,906,131

a = -7.1264

b = [ n(xy) - (x)(y) ] / [ n(x2) - (x)2 ]

b = [ 20(125,051) - (14,517)(168) ] / [ 20(10,682,471) - (14,517)2 ]

b = 0.0214

y' = -7.24 + 0.0214x

For x = 715 miles

y' = -7.24 + (0.0214)(715)

y' = 8.06

The estimated shipping time for a distance of 715 miles is 8.06 days, or
9 days if rounded up to the next whole day.
Problem #13-2

A sample of 12 homes sold last week in St Paul, Minnesota, is selected. The results are shown below:
Home size
(1000 sq ft), Selling price
x ($1000), y xy x2 y2
1 1.40 100 140.00 1.96 10,000.00
2 1.30 110 143.00 1.69 12,100.00
3 1.20 105 126.00 1.44 11,025.00
4 1.10 120 132.00 1.21 14,400.00
5 1.40 80 112.00 1.96 6,400.00
6 1.00 105 105.00 1.00 11,025.00
7 1.30 110 143.00 1.69 12,100.00
8 0.80 85 68.00 0.64 7,225.00
9 1.20 105 126.00 1.44 11,025.00
10 0.90 75 67.50 0.81 5,625.00
11 1.10 70 77.00 1.21 4,900.00
12 1.10 95 104.50 1.21 9,025.00
Sums 13.80 1160.00 1344.00 16.26 114850.00

a. Determine and interpret the coefficient of determination.

Coefficient of Correlation, r = [n(xy) - (x)(y) ] / sqrt[[n(x2)-(x)2][n(y2) - (y)2]]

r = [12(1,344) - (13.8)(1,160) ] / sqrt[[12(16.26)-(13.8)2][12(114,850) - (1,160)2]]

r = 120/390.60
r = 0.3072

Coefficient of determination = r2 = (0.3072)2 = 0.0944 = 9.94%

 This means that only 9.94% of the total variation is explained by the regression line, while the
remaining 90.06% of the total variation is unexplained, indicating a very week correlation between
home size and selling price.

b. What would be the estimated selling price of a home that has 1.0 thousand square feet?

y' = a + bx

a = [(y)(x2) - (x)(xy)] / [ n(x2) - (x)2 ]

a = [(1,160)(16.26) - (13.8)(1,344)] / [ 12(16.26) - (13.8)2 ]

a = 67.195

b = [ n(xy) - (x)(y) ] / [ n(x2) - (x)2 ]

b = [ 12(1344) - (13.8)(1,160) ] / [ 12(16.26) - (13.8)2 ]

b = 25.6410

y' = 67.195 + 25.641x

For x = 1 (thousand square feet)

y' = 67.195 + 25.641(1)

y' = 92.82051

The estimated selling price for a home that has 1000 square feet is $92,820.