stats-case 15.5

# stats-case 15.5 - average shipping costs will increase by...

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Travis Giguere Matlock Arnold Achem Pichay Mgt 3440-1

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Case Study 15.5 Wendell Motors Executive Summary
To create a model to figure out what affect shipping on holidays has, we ran a forward selection  stepwise regression analysis. By looking at the analysis we can discover what kind of  correlation shipping on holidays will have on the shipping cost. We can see that the variable  with the highest correlation to shipping costs is the weight of the package. The variable with the  next highest correlation to shipping price is whether or not the item was shipped on a holiday.  Since the P value is below the alpha level we can conclude that shipping on a holiday does  have a significant correlation with the cost of the shipment. Our analysis tells us that with all  other variables applicable, when the company decides to ship their product during a holiday, on
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Unformatted text preview: average, shipping costs will increase by \$17.61. This shows that the company will be losing about an extra \$17.61 every time they ship a product on a holiday. Introduction Wendell Motors makes and ships small electric motors to customers in and around the St/ Louis area. On occasion Wendell Motors encounters a customer that is in emergency need of a motor, so Wendell must rush the motor through production and then expedite it to the customer. The management team is worried that these special orders are too expensive to handle, especially concerning the orders that must be shipped on holidays. Tyler Jenkins must develop a model that can estimate the cost of expediting a customers orders which will also tell him what affect shipping on holidays will have on the cost....
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