DeMarco Company is developing a cost formula for its packing activity. Discussion with the workers in the Packing Department has revealed that packing costs are associated with the number of customer orders, the size of the orders, and the relative fragility of the items (more fragile items must be specially wrapped in bubble wrap and Styrofoam). Data for the past 20 months have been gathered:

Packing Cost Number of Orders Weight of Orders Number of Fragile Items Month 1 24,640 1,120 31,220 1,400 18,000 1,000 19,350 850 $45,000 58,000 39,000 35,600 90,000 126,000 90,600 63,000 79,000 11,200 14,000 10,500 9,000 21,000 31,000 20,000 15,000 16,000 46,200 4,000 5,500 64,000 60,000 40,000 1,800 8 750 9 59,000 1,500 10 155,000 40,000 88,000 2,500 11 11,800 14,000 450,000 640,000 41,000 54,000 113,500 150,000 10,000 14,000 249,700 390,000 23,000 29,400 900 14 890 58,000 15,000 30,000 1,500 14,500 1,340 58,090 80,110 123,000 31,900 50,000 25,000 18,000 30,000 3,000 18 2,000 | 19 108,000 20 76,000 27,000 18,000 63,450 41,400 1,900 1,430 1. Using the method of least squares, run a regression using the number of orders as the independent variable. Round "Adjusted R Square" answer to six decimals and "Standard Error" answer to three decimal places. Regression Statistics 0.997046 x Adjusted R Square Standard Error 8,195.83 Observations 20 2. Run a multiple regression using three independent variables: the number of orders, the weight of orders, and the number of fragile items. Round "Adjusted R Square" answer to six decimals and "Standard Error" answer to three decimal places. Regression Statistics Adjusted R Square 0.999886 1,607.63 X Standard Error Observations 20 Which regression equation is better? The multiple regression equation is much better. 3. Predict the total packing cost for 25,000 orders, weighing 40,000 pounds, with 4,000 fragile items. Round regression intercept to whole dollar and coefficients to two decimal places (nearest cent). Enter the final answer rounded to the nearest dollar. Y = $ 91,999 X