(A)Estimate a Simple Linear Regression Model Involving Shipping Cost and Package

question 53

Essay

(A)Estimate a simple linear regression model involving shipping cost and package weight.Interpret the slope coefficient of the least squares line as well as the computed value of .
(B)Add another explanatory variable - distance shipped - to the regression to (A).Estimate and interpret this expanded model.How does the value for this multiple regression model compare to that of the simple regression model estimated in (A)? Explain any difference between the two values.Compute and interpret the adjusted value for the revised model.
(C)Suppose that one of the managers of this express delivery service company is trying to decide whether to add an interaction term involving the package weight and the distance shipped in the multiple regression model developed previously.Why would the manager want to add such a term to the regression equation?
(D)Estimate the revised model using the interaction term suggested in (C).
(E)Interpret each of the estimated coefficients in your revised model in (D).In particular,how do you interpret the coefficient for the interaction term in the revised model?
(F)Does this revised model in (D)fit the given data better than the original multiple regression model in (B)? Explain why or why not.

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Definitions:

Consensus

A general agreement among the members of a group or the outcome of that agreement.

Decision

The act or process of making a choice or judgment after considering different courses of action.

Conflict

A situation where there are incompatible interests, beliefs, or objectives between two or more parties, leading to a disagreement or dispute.

Group Decision

The outcome or resolution arrived at by a group of individuals through a deliberative process.