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16 A mail order catalog business that sells personal computer supplies, software. and hardware maintains a centralized warehouse for the distribution of products ordered.


16 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 that indicates the warehouse distribution costs and the number of orders received have been collected over the past 15 months. These are the results: Months Distribution Cost 1 2 3 4 5 6 7 N 9 10 11 52 71 85 12 13 14 15 72 68 52 70 82 74 Number of orders 4015 3806 5309 4262 4296 4097 3213 4809 5237 4732 4413 2921 70 54 62 72 58 a) Assuming a linear relationship, use the least squares method to find the regression coefficients 3977 4428 3964 b) Predict the monthly warehouse distribution costs when the number of orders is 4.500

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