Question

The Tyson Company assembles and sells computer boards in westem Pennsylvania. In an effort to improve the planning and control of shipping expenses, management is trying to detemine which of three variables units shipped, weight shipped, or sales value of units shipped - has the closest relationship with shipping expenses. The following information is available Month Ma Ma Units ShippeWeight Shipped (lbsSales Val.-Units ShippeShipping Expense 2,500 2,500 3,000 3,000 3,300 3,400 3,500 3,500 3,600 3,600 3,800 4,000 4,000 4,000 4,100 6,300 6,200 7,900 2,800$ 2,800 $ 3,800 $ 3,800 $ 5,300 $ 4,800 $ 4,700$ 4,700$ 5,200 $ 5,200 4,100 3,400 $ 6,000 $ 3,400 $ 4,600 $ 4,600$ 6,500 $ 6,500 $ 6,300 $ 6,300 $ 50,000 $ 50,000 $ 40,000$ 40,000 $ 53,000 $ 48,000 $ 47,000$ 47,000 $ 55,000 $ 55,000 $ 80,000 $ 45,000 $ 70,000 $ 45,000 $ 82,000 $ 82,000 $ 57,000 $ 57,000 $ 68,000 $ 68,000 $ November December 7,900 7,900 7,600 7,800 7,800 8,000 8,000 7,400 7,000 7,500 7,700 7,800 9,900 10,000 8,100 8,300 June June October ril September January-02 January-0:3 August February February 4,300 4,300 4,900 4,900 Required 1. Determine the regression equation that has the closest relationship with shipping expenses Put the results of each regression attempt on a separate sheet in this file and label the sheet.) 2. Using the independent variables that appear to have the closest relationship to shipping expenses, develop a cost estimating equation for total monthly shipping expenses Write the formula here.) 3. Use the equation developed in (2) to predict total shipping expenses in a month when 6,000 units, weighting 3,000 lbs., with a total sales value of $57,000 are shipped (Put your prediction here.) Total shipping expenses -

Answer 1