FINANCE 101-A company is trying to decide which 3PL
Subject: Mathematics    / Statistics
Question
A company is trying to decide which 3PL company to use to make shipments to their customers. The packages being shipped are between 4 and 20 lbs., are shipped between 0 and 200 miles and some are fragile. They used three different companies for 20 shipments each during the month of January to gather some information about the shipping costs. This data is provided in the Excel Sheet “Shipment”.

1) Run a regression on each company individually and report the linear regression model (equation) for each 3PL company.

2) Explain the meaning of the intercept and each slope for 3PL company 1.

3) Is the overall regression model significant for each 3PL company at an alpha level of 0.05?

4) What percent of the total variation in shipping cost can be explained by the model developed for each of the 3PL companies.

5) What would be the cost of shipping a fragile, 6 lb. package 25 miles with each company? Which one would you hire to send the package?

6) What would be the cost of shipping a non-fragile, 6 lb. package 25 miles with each company? Which one would you hire to send the package?

Company 1
Weight
Miles
13
125 Not
12
188 Fragile
15
67 Not
17
45 Not
19
51 Not
10
18 Not
10
130 Not
19
183 Fragile
15
169 Fragile
12
98 Not
10
62 Not
9
36 Not
13
151 Fragile
17
70 Fragile
7
172 Fragile
9
17 Fragile
14
139 Not
10
199 Not
15
112 Not
13
72 Fragile Cost
49.02
70.6
23.09
20.31
26.11
11.91
40.52
69.58
60.25
38.5
22.34
13.05
58.09
31.32
65.11
18.55
55.45
71.28
44.32
36.45 Company 2
Weight
Miles
4
125 Not
13
156 Fragile
20
83 Fragile
7
46 Not
20
106 Fragile
10
127 Not
18
131 Fragile
9
132 Fragile
6
144 Not
7
21 Fragile
6
127 Not
17
73 Fragile
5
199 Not
13
21 Fragile
11
97 Not
13
194 Fragile
15
32 Fragile
17
137 Not
16
149 Not
16
79 Fragile Cost
40.38
44.59
30.93
22.58
41.46
33.5
37.91
38.39
41.75
11.3
35
27.97
55.76
13.96
30.76
59.86
14.74
45.91
39.42
25.49 Company 3
Weight
Miles
9
177 Not
16
52 Not
9
104 Fragile
5
10 Not
4
141 Fragile
20
98 Fragile
4
119 Fragile
8
78 Fragile
12
123 Not
17
38 Fragile
8
35 Fragile
16
61 Not
7
15 Not
11
39 Not
6
143 Not
16
55 Fragile
9
105 Not
13
172 Fragile
20
8 Not
12
153 Not Cost
78.94
31.8
48.76
11.34
68.79
55.24
53.53
43.6
62.8
28.93
19.04
34.18
16.56
14
63.15
26.4
51.26
81.99
9.78
70.5