Exhibit 14-1An Express Delivery Service Company Recently Conducted a Study

question 8

Essay

Exhibit 14-1An express delivery service company recently conducted a study to investigate the relationship between the cost of shipping a package (Y), the package weight in pounds (X1), and the distance shipped in miles (X2). Twenty packages were randomly selected from among the large number received for shipment, and a detailed analysis of the shipping cost was conducted for each package. The sample information is shown in the table below:
$$\begin{array} { c c c } \text { Cost of Shipment } & \text { Package Weight } & \text { Distance Shipped } \\\$ 3.40 & 4.3 & 100 \\\$ 2.10 & 0.5 & 165 \\\$ 11.10 & 5.3 & 245 \\\$ 2.70 & 6.1 & 52 \\\$ 2.00 & 4.7 & 58 \\\$ 8.10 & 3.7 & 255 \\\$ 15.60 & 7.2 & 265 \\\$ 5.10 & 2.6 & 214 \\\$ 1.10 & 0.8 & 105 \\\$ 4.50 & 0.95 & 285 \\\$ 6.10 & 6.4 & 120 \\\$ 1.80 & 1.3 & 95 \\\$ 14.60 & 6.7 & 245 \\\$ 14.10 & 7.7 & 195 \\\$ 9.30 & 6.8 & 165 \\\$ 1.20 & 2.9 & 50 \\\$ 12.20 & 8.3 & 165 \\\$ 1.60 & 0.9 & 85 \\\$ 8.10 & 4.6 & 207 \\\$ 4.00 & 3.4 & 150\end{array}$$
-Refer to Exhibit 14-1. Estimate a simple linear regression model involving shipping cost and package weight. Interpret the slope coefficient of the least squares line as well as R2.

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Definitions:

Foreclosure Rates

The frequency at which properties are forced to be sold due to the owner's failure to pay the mortgage.

Down Payment

An initial, upfront partial payment for the purchase of expensive items/services, typically associated with the purchase of a home or vehicle.

Freddie Mac

A public government-sponsored enterprise (GSE) that operates in the secondary mortgage market to increase the availability and affordability of home loans.

Fannie Mae

A government-sponsored enterprise established to expand the secondary mortgage market by making mortgages more accessible and affordable.