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STAT 640 - Statistical and Quantitative Analysis

Fall 2012

Case Studies for Discussion

Case 4A – Chain’s Operations

One of the critical factors that determine the success of a catalogue store chain is the
availability of products that consumers want to buy. If a store is sold out, future sales to
that customer are less likely. Accordingly, delivery trucks operating from a central
warehouse regularly resupply stores. In an analysis of a chain’s operations, the general
manager wanted to determine the factors that are related to how long it takes to
unload delivery trucks. A random sample of 50 deliveries to one store was observed.
The times (in minutes) to unload the truck, the total number of boxes, and the total
weight (in hundreds of pounds) of the boxes were recorded and stored in file
1. Determine the multiple regression equation.
2. How well does the model fit the data? Explain.
3. Are the required conditions satisfied?
4. Interpret and test the coefficients. What does this analysis tell you?
5. Produce a 95% prediction interval for the amount of time needed to unload a a
truck with 100 boxes weighing 5,000 pounds.
6. Produce a 95% interval estimate of the average amount of time needed to
unload trucks with 100 boxes weighing 5,000 pounds.
Case 4B – Gender-Discrimination Suit
Data file: Bank.xls

The Fifth National Bank of Springfield is facing a gender-discrimination suit. The charge
is that its female employees receive substantially smaller salaries than its male
employees. The bank’s employee database is listed in the file Bank.xls.
Do these data provide evidence that females are discriminated against in terms of
For each of the 208 employees, the data set includes the following variables:

 EducLev: education level, a categorical variable with categories 1 (finished

high school), 2 (finished some college courses), 3 (obtianed a bachelor’s
degree), 4 (took some graduate courses) and 5 (obtained a graduate degree)
 JobGrade: a categorical variable indicating the current job level, the possible
levels being from 1-6 (6 is highest)
 YrHired: year employee was hired
 YrBorn: year employee was born
 Gender: a categorical variable with values “Female” and “Male”
 YrsPrior: number of years of work experience at another bank prior to
working at Fifth National
 PCJob: a dummy variable with value 1 if the employee’s current job is
computer-related and value 0 otherwise
 Salary: current annual salary in thousands of dollars