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Nathan's latest project is to examine the delivery costs for his company's online product sales. Even though the company's traditional brick-and-mortar stores are still
Nathan's latest project is to examine the delivery costs for his company's online product sales. Even though the company's traditional brick-and-mortar stores are still popular, the vast majority of its new customers are buying online and paying a bit more to have items delivered. Nathan is modeling these costs so that his company can more accurately predict them, with an eventual plan to assign a delivery fee based on a given cost driver. He isn't to that point yet, but it is already on his docket as his next assignment. For now, he has three possible cost drivers to evaluate in relation to weekly delivery cost. Data for the past 18 weeks for all variables is as follows. Week Number of Delivery Miles per Week Number of Packages per Week Number of Locations per Week Delivery Cost 1 13,200 8,230 2,750 $45,000 2 12,700 3,380 1,540 58,000 3 4,960 3,200 1,100 39,000 8,100 7,400 1,700 35,600 10 21,500 9,240 1,050 90,000 24,500 12,300 4,200 126,000 26,000 11,000 1,980 90,600 8 17.500 7,500 770 63,000 9 22,640 5,130 1.650 79,000 10 10. 17,150 13.940 1,850 138,000 #2 11 7,000 4,600 2,400 41,000 12 9.800 9,900 2.500 54,000 13 10,500 6.000 1.650 48,000 14 5.580 5,000 3.680 48.000 15 16,400 10.000 3.300 80,100 16 22.700 13,500 1,280 123,000 17 24,170 11.680 2,750 108,000 18 7.890 R.200 4.150 76,000
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