Question:

In addition to looking at differences between distribution centers, your manager also wants to know the relationship between the number of orders routed through each center and the distribution cost. Thus, the number of orders is your independent variable and the cost is your dependent variable.

1. Construct a scatter plot of the two variables.
2. Estimate a simple linear regression between these two variables.
3. Interpret the meaning of &beta 0 and &beta 1 .
4. 
   Predict the mean distribution costs of 500 orders, 1000 orders, and 1500 orders. Are these appropriate predictions?
5. Comment briefly on the predictive power/statistical significance of your estimates.

Price: $2.99

Solution: The downloadable solution consists of 4 pages
Deliverable: Word Document