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:

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?

Transcribed Image Text:

Packaging and Processing Costs ($), y Weight (Pounds), x 97 230 109 280 88 210 86 190 123 320 114 300 112 280 102 260 107 270 86 190