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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A mail-order catalog business that sells personal computer supplies, software, and hardware maintains a centralized warehouse for the distribution of products ordered. Management is currently examining the process of distribution from the warehouse and is interested in studying the factors that affect warehouse distribution costs. Currently, a small handling fee is added to the order, regardless of the amount of the order. Data have been collected over the past 24 months, indicating the warehouse distribution costs and the number of orders received. They are stored in the file warecost.xls. The results are as follows:

a. Assuming a linear relationship, use the least-squares method to find the regression coefficients b0 and b1.
b. Predict the monthly warehouse distribution costs when the number of orders is 4,500.
c. Plot the residuals versus the time period.
d. Compute the Durbin-Watson statistic. At the 0.05 level of significance, is there evidence of positive autocorrelation among the residuals?
e. Based on the results of (c) and (d), is there reason to question the validity of the model?
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