Solution-Compute the simple linear regression coefficients

Compute the simple linear regression coefficients

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Reference no: EM133076570

A warehouse manager is examining the process distribution to find out 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 taken over the past 10 months indicating the warehouse distribution costs and the number of orders received. The results are shown below.

Months	Distribution costs ($)	Number of orders
1	627	312
2	216	376
3	1215	920
4	906	956
5	1016	943
6	753	600
7	591	473
8	378	274
9	463	538
10	974	713

Compute the simple linear regression coefficients, b₀ and b₁, and state the linear regression model.
In one sentence each, interpret the meaning of b₀ and b₁ in this problem.
Use the regression equation developed in (b) to predict the monthly distribution warehouse costs when the number of orders is 390.
What is the value of the coefficient of determination (R-square)?

Reference no: EM133076570

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Compute the simple linear regression coefficients

Reference no: EM133076570

Reference no: EM133076570

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