Question

As owner of a small security firm you use CERs to develop most of your cost estimates. You are
bidding on a contract that is the largest in your company’s history and will involve about 20
sensors. Below are your historical records on installing these types of sensors? Using Excel fit a
linear regression model for your CER. Based upon R² and plot of the data is a linear model
appropriate?
Number of Sensors Integration and Installation Person – Hours/Sensor
2 12.4
5 16.6
5 14.6
9 27.7
9 28.3
11 42.9
15 77.6

Answer 1

R2 is .8724 which is considered to be a good R2.

Dots are very close to linear line and there are hardly any outliers.

So I can say this model is really good.

Person - Hours/Sensor y = 4.9114x - 7.8484 R=0.8724 0 2 4 6 8 10 12 14 16