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Grocery retailer. A large, national grocery retailer tracks productivity and costs of\ts facilitiesclosely. Data below were obtained from a single distribution center for a one-year period. Eachdata point for each variable represents one week of activity. The variables included are thenumber of cases shipped (XI)' the indirect costs of the total labor hours as a percentage (X2 ),a qualitative predictor called holiday that is coded 1 if the week has a holiday and 0 otherwise(X3), and the total labor hours (Y).;; 2 3 50 51 52Xil: 305,657 328,476 317,164 290,455 411,750 292,087X;2: 7.17 6.20 4.61 7.99 7.83 7.77Xi3: ° ° ° ° ° ° Y;: 4264 4496 4317 4499 4186 4342a. Prepare separate stem-and-leaf plots for the number of cases shipped Xi I and the indirectcost of the total hours Xi2. Are there any outlying cases present? Are there any gaps in thedata?b. The cases are given in consecutive weeks. Prepare a time plot for each predictor variable.- What do the plots show?c. Obtain the scatter plot matrix and the correlation matrix. What information do these diagnosticaids provide here?
8.25. R",fer to Grocery retailer Problems 6.9 and 7.4.a. Fit regression model (8.58) using the number of cases shipped (X d and the binary variable(X3) as predictors.b. Test whether or not the interaction terms and the quadratic term can be dropped from themodel; use a = .05. State the alternatives, decision rule, and conclusion. What is the P-valueof the test?
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