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Wendell Motors manufactures and ships auto parts to retailers throughout the region. The managers randomly sampled 45 shipping receipts and the data appears in the
Wendell Motors manufactures and ships auto parts to retailers throughout the region. The managers randomly sampled 45 shipping receipts and the data appears in the le \"Wendell\" (posted on Canvas). Weight refers to the weight of the part shipped in kilograms, Distance refers to the distance shipped in miles, and Shipping Cost refers to the total shipping cost in dollars. (a) Estimate a multiple regression model where the dependent variable is Shipping Cost and the independent variables are Distance and Weight. Write down the estimated regression equation. Label this Model 1. (b) Consider an item that must be shipped 170 miles. Ifthe item could be redesigned so that it is lighter by 10 kilograms, how much would this reduce the predicted shipping cost in Model 1? Be as specic as possible. (c) Estimate a quadratic (parabolic) multiple regression model where the dependent variable is Shipping Cost and the independent variables are Distance, Weight, and Weightsquared. Write down your estimated regression equation. Label this Model 2. ((1) Consider an item that must be shipped 170 miles. Ifthe item could be redesigned so that it is lighter by 10 kilograms, how much would this reduce the predicted shipping cost in Model 2? Be as specic as possible. (e) Which model offers a better t to the data? Justify your response with statistical reasoning
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