Question: Hello dear, please help me to solve the problem as follows: Requirement: Need to follow the rubric and use excel to solve this problem: Rubric
Hello dear, please help me to solve the problem as follows:
Requirement: Need to follow the rubric and use excel to solve this problem:
Rubric for problem number 3:
a) Provide the appropriate regression equation for this problem which requires the use of dummy
variables. Note that the number of dummy variables needed is always the number of categories
(in this case 3) minus 1. (5 points)
b) Interpret each of the coefficients including the intercept (6 points; 2 points for each coefficient).
Hint: these coefficients can be interpreted as means (averages).
c) Which cargo is most costly? (2 points)
Which cargo is least costly? (2 points)
d) Assess the fit of the data. Hint: look at the R-square and interpret it as a percentage of the
variation explained by the model. (2 points). How could you improve the fit of the model (1
point).
e) Predict the cost of a semifragile cargo. (4 points)
The data of problem number 3:
| Shipment | Cargo Type | Cost of Shipment |
| 1 | Semifragile | $7.00 |
| 2 | Durable | $2.00 |
| 3 | Fragile | $13.80 |
| 4 | Fragile | $11.10 |
| 5 | Semifragile | $10.00 |
| 6 | Fragile | $17.20 |
| 7 | Semifragile | $11.50 |
| 8 | Semifragile | $6.50 |
| 9 | Semifragile | $8.50 |
| 10 | Durable | $2.10 |
| 11 | Fragile | $10.90 |
| 12 | Fragile | $12.00 |
| 13 | Durable | $7.50 |
| 14 | Durable | $3.40 |
| 15 | Durable | $1.30 |
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