Quantitative Analysis for

Management Science Homework

Chapter 4
Rendy Putra Setyawan RA6047248

14.
Using this data, test to see if there is a statistically significant relationship between
the grade on the first test and the final average at 0.05 significance.

First test
grade
98
77
88
80
96
61
66
96
69
Solution:

Define the hypothesis:

H 0 : 1=0
H 1: 1 0

With significance = 0.05

Using excel to find the regression:

Final
Average
93
78
84
73
84
64
64
95
76

Calculate value of test statistics, found the F=41.399

Check F
From appendix D.

F0.05, 1,7=5.59

From the app. D, the value of the F test is more than 5.59 so reject the null
hypothesis. The conclusion is no relationship between first test grade and
final average.

17.
Accountant at the firm Wlaker and Walker believed that several traveling executives
submit unusually high travel vouchers when they return from business trips. The
accountants took a sample of 200 vouchers submitted from the past year then they
developed the following multiple regression equation relating expected travel cost
(Y) to number of days on the road (X1) and distance traveled (X2) in miles.

With the coefficient correlation computed was 0.68.

Solution:
a. Thomas Williams, 300-mile trip, 5 days.
Expected amount of expenses:

Y =$ 90.00+ $ 48.50 ( 5 )+ $ 0.40 (300)

Y =$ 452. 5
b. Williams submitted $685.
With correlation of coefficient (r) = 0.68, it means measurement between two
variable (X1 and X2). From r, we can find r2 = 0.4624.
The r2 explain about the proportion of variability in Y that is explained by the
regression equation. Because the r 2 is less than 0.5 or 50% so the accountant
might pay the reimbursement because the regression r 2 is low.

c. From the r2 we can found the proportion of variability in Y that is explained by

the regression equation is low (0.4624). From the correlation of coefficient
that measure of the strength of relationship between two variable is 0.68.
To make the regression more valid they can increase the number of sample or
add some variable such as food cost, accommodation (hotel) or anything
else.