Confederate Express is attempting to determine how its monthly shipping costs depend on the number of units shipped during a month. The file P13_46.xlsx contains the number of units shipped and total shipping costs for the past 15 months. a. Use regression to determine a relationship between units shipped and monthly shipping costs. b. Plot the errors for the predictions in order of time sequence. Is there any unusual pattern? c. Suppose there was a trucking strike during months 11 to 15, and we believe that this might have influenced shipping costs. How could the answer to part a be modified to account for the effects of the strike? After accounting for the effects of the strike, does the unusual pattern in part b disappear? ( Hint : Use a dummy variable.)

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Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659
BuyFind

Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659

Solutions

Chapter
Section
Chapter 13, Problem 46P
Textbook Problem

Confederate Express is attempting to determine how its monthly shipping costs depend on the number of units shipped during a month. The file P13_46.xlsx contains the number of units shipped and total shipping costs for the past 15 months.

  1. a. Use regression to determine a relationship between units shipped and monthly shipping costs.
  2. b. Plot the errors for the predictions in order of time sequence. Is there any unusual pattern?
  3. c. Suppose there was a trucking strike during months 11 to 15, and we believe that this might have influenced shipping costs. How could the answer to part a be modified to account for the effects of the strike? After accounting for the effects of the strike, does the unusual pattern in part b disappear? (Hint: Use a dummy variable.)

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Chapter 13 Solutions

Practical Management Science
Ch. 13.4 - Suppose you are an analyst for a company that...Ch. 13.4 - A trucking company wants to predict the yearly...Ch. 13.4 - An antique collector believes that the price...Ch. 13.4 - Stock market analysts are continually looking for...Ch. 13.4 - Suppose that a regional express delivery service...Ch. 13.4 - The owner of a restaurant in Bloomington, Indiana,...Ch. 13.6 - The file P13_19.xlsx contains the weekly sales of...Ch. 13.6 - The file P13_20.xlsx contains the monthly sales of...Ch. 13.6 - The file P13_21.xlsx contains the weekly sales of...Ch. 13.6 - The file P13_22.xlsx contains total monthly U.S....Ch. 13.7 - You have been assigned to forecast the number of...Ch. 13.7 - Simple exponential smoothing with = 0.3 is being...Ch. 13.7 - The file P13_25.xlsx contains the quarterly...Ch. 13.7 - The file P13_26.xlsx contains the monthly number...Ch. 13.7 - The file P13_27.xlsx contains yearly data on the...Ch. 13.7 - The file P13_28.xlsx contains monthly retail sales...Ch. 13.7 - The file P13_29.xlsx contains monthly time series...Ch. 13.7 - A version of simple exponential smoothing can be...Ch. 13 - Many companies manufacture products that are at...Ch. 13 - A power company located in southern Alabama wants...Ch. 13 - Management of a home appliance store would like to...Ch. 13 - A small computer chip manufacturer wants to...Ch. 13 - The file P13_35.xlsx contains the amount of money...Ch. 13 - When potential workers apply for a job that...Ch. 13 - Callaway Golf is trying to determine how the price...Ch. 13 - Let Yt be the sales during month t (in thousands...Ch. 13 - The Baker Company wants to develop a budget to...Ch. 13 - The auditor of Kiely Manufacturing is concerned...Ch. 13 - The file P13_42.xlsx contains monthly data on...Ch. 13 - The belief that larger majorities for an incumbent...Ch. 13 - The auditor of Kaefer Manufacturing uses...Ch. 13 - (Based on an actual court case in Philadelphia.)...Ch. 13 - Confederate Express is attempting to determine how...Ch. 13 - Pernavik Dairy produces and sells a wide range of...

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