continued analysis of LLA choice Retum to the rnake or buy illustration in the text, surrounding Table 14.3, where we used the regression based LLA of av = 2,425,200 + 3.IDL, along with PI = 600, P2 = 1,100, and P = 250.

a] Are the error tenns consistent with the assurnptions of regression analysis?

b] Concentrate on the slope of3.1. Detennine the range over whieh this slope can vary without changing the decision of q; = 3,000, % = 3,000 and q; = 500.

AppendixLO1