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Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*) Cambridge SoundWorks sell portable speakers systems and bluetooth headphones. In an effort to improve the

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Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*) Cambridge SoundWorks sell portable speakers systems and bluetooth headphones. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of three variables-units shipped, weight shipped or sales value of units shipped-has the closest relationship with shipping expenses. The following information is available: Weight Sales Value of Shipping Month Units Shipped shipped (lbs.) Units Shipped Expenses May 10,000 7.500 $350.000 538.000 June 12.000 8.760 432.000 42,000 July 15.000 9,200 420,000 50,100 August 20.000 10.500 400,000 72.500 September 12.000 7,600 300,000 41,000 October 8.000 320,000 35 600 6.000 Required a. With the aid of a spreadsheet program, determine whether units shipped, weight shipped, or sales value of units shipped has the closest relationship with shipping expenses. Complete the r.squared values between each possible independent variable and shipping expenses: Round answers to two decimal places. Units shipped 0.94 Weight shipped 0.78 Sale value 023 With the aid of a spreadsheet program, determine whether units shipped, weight shipped, or sales value of units shipped has the closest relationship with shipping expenses. Complete ther-squared values between each possible independent variable and shipping expenses: Round answers to two decimal places, Units shipped Weight shipped 0.78 Sale value 0.23 0.94 Based on the coefficient of determination, units shipped has the closest relationship with shipping expenses. b. Using the independent variable that appears to have the closest relationship to shipping expenses, develop a cost estimating equation for total monthly shipping expenses. Round answers to two decimal places Shipping expenses S 6193.31 vos 3.14 X c. Use the equation developed in requirement (b) to predict total shipping expenses in a month when 14,000 units, weighing 9.380 lbs., with a total sales value of $420,000 are shipped Check

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