Dr.Stevens-Genius-ONLY – Business Finance 2023

Problem 1:Airfreight breakage.  A substance used in biological and medical research is shipped by

airfreight in cartons of 1,000 ampoules.  The data below, involving 10 shipments, were

collected on the number of times the carton was transferred from one aircraft to another

over the shipment route (X) and the number of ampoules found to be broken upon arrival

(Y).  Use the data given below to determine: (a) the least squares trend line (should

provide graph and equation), (b) the value for r 2 and explain what it means and (c) the

predicted number of broken ampoules when a container is transferred 5 times.

X 1,0,2,3,1,0,2,1,0

Y 16,9,17,12,22,13,8,15,19,11