Question

6. Connie Harris, in charge of office supplies at First Capital Mortgage Corp., would like to predict the quantity of paper used in the office photocopying machines per month. She believes that the number of loans originated in a month influence the volume of photocopying performed. She has compiled recent monthly data in the data sheet. a. Develop the least-squares estimated regression equation that relates sheets of photocopy paper used to loans originated. b. Use the regression equation developed in part (a) to forecast the amount of paper used in a month when 42 loan originations are expected. c. What is the R2 and what does it mean (interpret it)?

Answer 1

Here y = sheet of photocopy X Number of loans. Accor rding to data, x = 3 2 O Σχ2 13800 Ey = 164 &y² = 3500 Exy 6885 &y² @ b maxЧ EX Ey nax? - (EX) 8 * 6885 320 * 164.09 8 # 13800 (320) 55080 52980 110400 1024oo 2600 8ooo b 0.325 ý - błcost 20.5 -0.325 * 40 7.5 a

The required os regression ogn is, y = 7.5 to 3258 b when X = 42 ŷ = 7.5 +0:325 * 42 21.15 y when x = 42 then y = 21. © R2 (1 (correlation coeff.) 2 11 nExy - EX &Y roderon In&x² - (Ex)2 Inay? (Ery)? 8* 6885 - 320 * 164 8*13800 - (320) 8*3500 (164)2 7. (164)2 x 55080 52480 11 110400 1024oo 28000 26896 260o 89.443*, 33.226 2600 2971.9 0.8749 11 R2 0.7654 Number of loans of sheets of Interpretation :- photocopy explain 76.sul. variability