Coefficients Unstandardized Coefficients Standardized Coeffi

Coefficients

Unstandardized Coefficients

Standardized Coefficients

Model

B

Std. Error

Beta

t

Sig.

1

(Constant)

87.00

25.984

3.348

.010

CASES

6.545E02

.004

.985

15.981

.000

R^2 = .970

Thus, the regression equation is

Y = .065X + 87.000

a.) Is the evidence consistent with the hypothesis that increasing the number of cases per shipment increases transportation cost?

b.) If so, how strong is the relationship between the variables?

c.) Based on this analysis, what is the expected additional shipping cost for each extra case per shipment?

Solution

It is given that the regression equation is:

Y=0.065X+87.000

And R^2=0.970

a)Yes, the evidence consistent with the hypothesis that increasing the number of cases per shipment increases transportation cost.

b) The relationship between the variables is very strong and positive as the correlation coefficient is nearly +1.

c) Based on this analysis,the expected additional shipping cost for each extra case per shipment is 87.000.