Emeril Company manufactures and sells toaster ovens. To improve the planning and control of shipping expenses, management is trying to determine which of three variables—units shipped, weight shipped, or sales value of units shipped—has the closest relationship with shipping expenses.

Run 3 separate regressions. In each regression use the Shipping Expenses as the dependent variable (Y).

• In regression 1, use the Units Shipped as the independent variable (X).
• In regression 2, use the Weight Shipped as the independent variable (X).
• In regression 3, use the Sales Value of Units Shipped as the independent variable (X).

Emeril Company Data

Month	Units Shipped	Weight Shipped (lbs.)	Sales Value of Units Shipped	Shipping Expenses (Y)
May	6,000	$6,200	$100,000	$5,600
June	10,000	8,000	110,000	7,700
July	8,000	8,100	80,000	6,500
August	14,000	10,000	114,000	10,400
September	12,000	7,000	140,000	8,600
October	9,000	8,000	160,000	8,200

a) Based on the data provided, the R-squared of units shipped would be ___________.

b)Based on the data provided, the R-squared of weight shipped would be ___________ pounds.

c) Based on the data provided, the R-squared of sales value of units shipped would be $___________.

d) Using the regression output of the independent variable that appears to have the closest relationship to shipping expenses, the fixed cost per month would be $___________.

e) Using the independent variable that has the closest relationship to shipping expenses, the variable cost would be $___________. Round your answers to 2 decimal places.

f)  Using the rounded data from the requirements determined in questions 4 and 5, the predicted total shipping expenses—in a month when 10,000 units, weighing 14,000 lbs., with a total sales value of $228,000 are shipped—would be $___________.

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The following steps are followed in using Excel to determine the regression regression model Step 1 Arrange the data in the independent and dependent ... View the full answer