from Applied Linear Statistical Models, by Kutner et. al: Refer to the Toluca Company example from the notes, as well as the data. The data set is called CH01TA01.txt. The first column contains lot sizes and the second contains hours worked. A consultant advises the Toluca Company that increasing the lot size by one unit requires an increase of about 3 in the expected number of work hours for the production item. (a) Test to see if the increase in expected number of work hours equals or differs from the consultant's opinion. (b) Calculate the power of your test in the previous part if in fact the con- sultant's recommendation is 1/2 hour too low. Assume the standard deviation of the slope coefficient to be 0.35, and use a = 5%. (c) Why is the value of the F-statistic 105.88 given in the R output irrelevant in part (a)? calculations (d) Repeat the power calculation when the amount the standard is ac- tually exceeded is 1 hour and 1.5 hours. Do these power seem correct? Why?
