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Customer Number of cases Delivery Time 1 52 32.1 2 64 34.8 3 73 36.2 4...

Customer Number of cases Delivery Time
1 52 32.1
2 64 34.8
3 73 36.2
4 85 37.8
5 95 37.8
6 103 39.7
7 116 38.5
8 121 41.9
9 143 44.2
10 157 47.1
11 161 43
12 184 49.4
13 202 57.2
14 218 56.8
15 243 60.6
16 254 61.2
17 267 58.2
18 275 63.1
19 287 65.6
20 298 67.3

Management of a soft-drink bottling company wants to develop a method for allocating delivery costs to customers. Although one cost clearly relates to travel times within a particular route, another variable cost reflects the time required to unload the cases of soft drink at the delivery point. A sample of 20 deliveries within a territory was selected. The delivery time and the number of cases delivered were recorded. Develop a regression model to predict delivery time based on the number of cases delivered. Use the least-square method to calculate the regression coefficients, b0 and b1. Showing all formulas and equations a) Write your regression equation. b) Determine the coefficient of determination, r2, and explain it meaning in this problem. c) Perform a residual analysis. Is there any evidence of patterns in the residuals? Explain.

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