22. In the packaging department of a large aircraft parts distributor, a fairly reliable estimate of packaging
Question:
22. 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: (3.4)
Packaging and Weight Processing Costs ($), y (Pounds), x 45 75 68 84 94 139 61 83 54 81 86 107 82 97 75 91 90 131 99 145
a. Estimate the b0 and b1 coefficients, and determine the linear regression equation to fit these data.
b. What is the correlation coefficient (R)?
c. If an order weighs 250 lb, how much should it cost to package and process it?
Step by Step Answer:
Engineering Economy
ISBN: 9781292265001
17th Global Edition
Authors: William G. Sullivan ,Elin M. Wicks ,C. Patrick Koelling