A local trucking company fitted a regression to relate the cost of its shipments as a function of the distance traveled. The Excel fitted regression is shown. Based on this estimated relationship, when distance increases by 50 miles, the expected shipping cost would increase by:
A)$286.
B)$143.
C)$104.
D)$301.

Question

A local trucking company fitted a regression to relate the cost of its shipments as a function of the distance traveled. The Excel fitted regression is shown.  Based on this estimated relationship, when distance increases by 50 miles, the expected shipping cost would increase by:
A)$286. 
B)$143. 
C)$104. 
D)$301.

Quizplus · Accepted Answer

Looking at the regression output, we can see that the coefficient for "Miles" is 2.86. This means that for every one unit increase in distance (in this case, one mile), we can expect the shipping cost to increase by $2.86. Therefore, if the distance increases by 50 miles, we would expect the shipping cost to increase by 50 x 2.86 = $143. Option B is the closest answer.

A Local Trucking Company Fitted a Regression to Relate the Cost