Question

In the packaging department of a large aircraft parts distributor, a fairly reliable estimate of packaging and processing costs can be determined by knowing the weight of an order. Thus, the weight is a cost driver that accounts for a sizable fraction of the packaging and processing costs at this company. Data for the past 10 orders are given as follows: Packaging and Weight Processing Cost ($), y Pounds), x 225 285 225 185 315 305 280 255 280 200 95 108 90 a. Estimate the bo and b coefficients, and determine the linear regression equation to fit these data. b. What is the correlation coefficient (R)? c. If an order weighs 330 lb, how much should it cost to package and process it? 124 116 110 102 106 84 a. The coefficient bo is(Round to three decimal places.) The coefficient b1 is 다 (Round to three decimal places.) Enter your answer in the edit fields and then click Check Answer

Answer 1

Regression results:

SUMMARY OUTPUT Rearession Statistics MultipleR R Square Adjusted R Square Standard Error Observations 0.97 0.94 0.93 3.46 10.00 ANOVA Ms Significance F 1412.5214 12.52 Regression Residual Total 118.22 0.00 95.58 11.95 9 1508.10 Intercept Weight (X) Coefficients 30.67 0.28 Standard Error 6.68 0.03 t Stat 4.59 10.87 P-value 0.00 0.00 Lower 95% 15.27 0.22 Upper 95% 46.07 0.34

a. b0 is inctercept = 30.67, b1 is coefficient = 0.28

b. Correlation coefficient R = Multiple R = 0.97, means there is an association of 97 percent

c. =30.67+0.28*330 = 123.07, so for a 330 pounds it costs $123.07