Terry and Associates is a specialized medical testing center Denver, Colorado. One of the firm's ...
Terry and Associates is a specialized medical testing center Denver, Colorado. One of the firm's major sources of revenue is a lot used to test for elevated of lead in the blood. Workers in auto body shops, those in the lawn care industry, and commercial house painters are exposed to large amounts of lead and thus must be randomly tested. It is expensive to conduct the test, so the kits are delivered on demand to a variety of locations throughout the Denver area.
Kathleen Terry, the owner, is concerned about setting appropriate costs for each delivery. To investigate, Ms. Terry gathered information on a random sample 0f 46 recent deliveries. Factors thought to be related to the cost of delivering a kit were:
Prep The time in minutes between when the customized order is phoned into the company and when it is ready for delivery.
Delivery The actual travel time in minutes
from
Terry"s plant to the customer.
Mileage The distance in miles from Terry's plant to the customer.
Cost Prep Delivery Mileage
32.60 10 51 20
23.37 11 33 12
31.49 6 47 19
19.31 9 18 8
28.35 8 88 17
28.17 5 35 16
20.42 7 23 9
21.53 9 21 10
27.55 7 37 16
23.37 9 25 12
17.10 15 15 6
27.06 13 34 15
15.99 8 13 4
17.96 12 12 4
25.22 6 41 14
24.29 3 28 13
22.76 4 26 10
28.17 9 54 16
19.68 7 18 8
25.15 6 50 13
20.36 9 19 7
21.16 3 19 8
25.95 10 45 14
18.76 12 12 5
18.76 8 16 5
24.49 7 35 13
19.56 2 12 8
22.63 8 30 11
21.16 5 13 8
21.16 11 20 8
19.68 5 19 8
18.76 5 14 7
17.98 5 11 4
23.37 10 25 12
25.22 6 32 14
27.06 8 44 16
21.06 9 28 9
22.63 8 31 11
19.68 7 19 8
22.76 8 28 10
21.96 13 18 9
25.95 10 32 14
26.14 8 44 15
24.29 8 34 13
24.35 3 33 12
1. Write the regression equation.
2. Interpret the regression constant and partial regression coefficients.
3. Test the overall significant of the regression model
4. Is there any indication of multicollinearity.
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