Modeling Lumber Volume From Tree Diameter

       This scenario-based project was given to us as an assignment in my linear regression model class. A production planning supervisor for a lumber company has hired me to help with developing a predictive model. The lumber company wishes to use the diameter of a tree to predict the volume of lumber obtained from the tree after processing. A successful model will help the planning supervisor schedule tree-cutting and mill processing. There were needs for analysis in the following areas:

1. Develop a mathematical model, or two, to predict lumber volume from tree diameters.
2. Assess how well the model(s) fits the data. Perform appropriate diagnostics such as residual analysis, assumptions validation, etc.
3. Provide some useful confidence intervals to help aid the decision-making process.
4. Provide a rough gauge of average production for small, medium, and large trees. Use confidence intervals.
5. Estimate the total lumber volume of a single pallet of sixteen trees.

       The finished report can be found here; for those interested, here’s the data.