The Results of the Regression Analysis to Estimate Delivery Costs

question 37

Multiple Choice

The results of the regression analysis to estimate delivery costs are as follows:
Which of the following statements represent a valid conclusion based on the above regression analysis output?

• A) 54.4% of transportation cost can be explained by the number of cargos.
• B) The F-statistic is considered significant; therefore, the relationship in the regression is unlikely to happen by chance.
• C) The p-value associated with the intercept suggests that the delivery costs are entirely variable.
• D) Given the t-statistic, number of cargos is a poor cost driver of delivery cost.

---

Definitions:

Liquidity Risk

The risk that an entity may not be able to quickly convert assets to cash without significant losses.

Portfolio Management

The science and art of making decisions about investment mix and policy, matching investments to objectives, asset allocation, and balancing risk against performance.

Asset Value

The value of a company's assets, often used in determining its worth or the value of its shares.

Expected Excess Return

The additional return investors anticipate receiving on an investment over the risk-free rate as compensation for taking on higher risk.