Question

QUESTION 1

1. The best model for estimating shipping costs is (select the best answer)

   		Shipping Cost = 1.29 (Package Weight) + 0.03 (Distance Shipped) - 4.67
   		Package Weight = 1.29 (Shipping Cost) + 0.03 (Distance Shipped) - 4.67
   		Package Weight = 1.49 (Shipping Cost) + 0.27
   		Shipping Cost = 1.49 (Package Weight) + 0.27

20 points   

QUESTION 2

1. The R square  in the regression model with just package weight and the R square in the regression model with both package weight and distance shipped are different. This means (select the best answer).

   		R squared increased in the model with both package weight and distance shipped, therefore, the model with both package weight and distance shipped is insignificant.
   		R square increased in the model with both  package weight and distance shipped, therefore, the model with only package weight is the better model.
   		R squared decreased in the model with both package weight and distance shipped, therefore, that model is insignificant.
   		R square increased in the model with both package weight and distance shipped, therefore, it is the better model.

20 points   

QUESTION 3

1. What is the meaning of the difference between the Adjusted R Square in the regression model with just package weight and the R square in the regression model with both package weight and distance shipped (select the best answer).

   		The adjusted R square in the model with both package weight and distance shipped decreased, therefore, the model with both package weight and distance shipped is insignificant.
   		The adjusted R square in the model with both package weight and distance shipped increased, therefore, adding an additional variable helped make the model more accurate.
   		The adjusted R square in the model with both package weight and distance shipped increased, therefore, the model with both package weight and distance shipped is insignificant.
   		The adjusted R square in the model with both package weight and distance shipped decreased, therefore, adding an additional variable helped make the model more accurate.

20 points   

QUESTION 4

1. Using the best model, the estimated shipping cost for a package weighing 5 pounds and traveling 100 miles would be (select the best answer)

   		$4.78
   		$5.01
   		$6.23
   		$3.65

20 points   

QUESTION 5

1. The coefficients for package weight are different in the models because (select the best answer)

   		The coefficient of package weight in the model with ONLY  package weight is more accurate than the coefficient of package weight in the model with both package weight and distance shipped.
   		The coefficient of package weight in the model with BOTH package weight and distance shipped also includes the effect of distance shipped.
   		The coefficient of package weight in the model with ONLY package weight is effected by the noise from distance shipped as well as any other variable not in the model.
   		The coefficient of package weight should be the same in all models.

Answer 1

Question 1

option a

We need to estimate shipping cost therefore our dependent or Y variable Should be shipping cost.

It means either option a or option d could be our answer.

Another point is

That a multiple regression is always better than simple regression

Therefore option a should be chosen to estimate shipping cost.

All the best ::)))