Analyzing Shipping Costs: Descriptive Statistics and Regression Models

1. Peter Trooper, JPB’s CEO is concerned about shipping costs. In a recent meeting, he asked you to provide information on the following. Use Microsoft Excel for this assignment.

1. Compute descriptive statistics and a correlation matrix for all relevant variables. Which correlations are interesting? Why?
2. Find the best one variable regression model to predict total operating cost (total cost of diesel and DEF) for individual trips before they are taken using the 2016 data. Note: do not use Diesel Gallons and DEF Gallons in the model because this data will not be available before the trip.
3. Develop a high-quality linear regression model to predict total operating cost.

Using your models from part 2 and 3, predict the total operating cost using the data at righ