Question
Zip Delivery is a small shipping company that delivers packages as a third-party contractor for Amazon. The cost accountant if selecting the 'best' cost driver
Zip Delivery is a small shipping company that delivers packages as a third-party contractor for Amazon. The cost accountant if selecting the 'best' cost driver to use to allocate overhead costs. The three possible drivers she has selected are number of miles driven on the routes, the number of packages delivered, and the number of delivery stops. While one package is delivered to many of the delivery stops, some stops have multiple packages, often requiring multiple trips from the delivery truck to the customers' home or business location. The accountant has assembled and provided data containing the weekly delivery cost, miles driven, packages delivered, and number of delivery stops. Data of activities and weekly delivery costs
Generate a linear regression for each cost driver. Include a line fit plot.
Identify the best cost driver for delivery costs. Explain your choice.
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