Misty is a logistics analyst at Bear Industries. She is building a regression mo
ID: 455782 • Letter: M
Question
Misty is a logistics analyst at Bear Industries. She is building a regression model to predict LTL Shipping Cost given available data. The table below shows the correlation between LTL shipping cost and possible independent variables. Which of these variables will be the best variable for building a one-variable regression model to predict LTL Shipping Cost?
Crude oil price
Diesel fuel price
There is not enough information given to answer this question.
Unemployment rate
a.Crude oil price
b.Diesel fuel price
c.There is not enough information given to answer this question.
d.Unemployment rate
Crude Oil Price Diesel Fuel Price Unemployment Rate LTL Shipping Cost Crude Oil Price Diesel Fuel Price Unemployment Rate LTL Shipping Cost 0.701451 0.112214 0.425118 0.099805 0.623711 1 0.024103 1Explanation / Answer
Correleation coefficent represent the relation between the variables. A correlation coefficent close to 1 or -1 represents a strong relationship.
Diesel fuel Price has a strong relationship with the cLTL shipping cost with highest coefficent 0.623711 in the row.
Hence, the correct option is option (B)