Harlow Company is an online discount retailer. The CEO wants to better understand their distribution costs, and has asked his accounting team to look into it. Discussion with the workers in the distribution department have determined that distribution expense are operationally associated with:
1. Number of orders
2. The number of parcels in an order
3. Number of large items shipped
Data for the past 24 months as compiled by the accounting department: Using the data regression methodology, determine:
1. What is the best dependent variable to use as a predictor?
2. What variables (if any) have little to no effect on distribution cost?
3. What is the best single variable equation?
4. What is the best multiple variable equation?
5. Using your equation from 3 and 4, If Harlow expects to have 95,000 orders, with 150,000 parcels, and 9,500 large items, what is distribution cost?
6. What other factors do you think might play a part in distribution cost that are not outlined?
Attachment:- Project Data.rar