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 how much?
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 how much?
A)$286 
B)$143 
C)$104 
D)$301

Quizplus · Accepted Answer

From the fitted regression equation, we can see that the coefficient for distance is 2.86. This means that for each unit increase in distance (in this case, for every extra mile), the cost of shipping increases by $2.86. Therefore, when distance increases by 50 miles, we can expect the shipping cost to increase by 50 * $2.86 = $143. The correct answer is B.

A Local Trucking Company Fitted a Regression to Relate the Cost