[#2] Regression Analysis.

A package delivery company is analyzing factors affecting shipping costs. Currently, market analysts are focusing on the roles of package weight and the distance it is shipped.

Y = Cost = The cost of shipping a package (in dollars)

X1 = Weight = The weight of a package (in pounds)

X2 = Distance = The distance a package is shipped (in miles)

(a) Interpret the (unstandardized) slope coefficient on Weight. Type the numerical value and explain what that exact number means.

(b) Interpret the standardized slope coefficient on Distance. Type the numerical value and explain what that exact number means.

(c) What is the value of the constant? Explain what it indicates.

(d) Using the p-value method, conduct a hypothesis test for whether a linear relationship exists between Cost and Weight. Show all steps and use a 5% significance level.

(e) Using the test statistic method, conduct a hypothesis test for whether a linear relationship exists between Cost and Distance. Show all steps and use a 5% significance level.