A. Plot the purchase department cost vs. each cost driver (include these at the end of the memo as an attachment, one graph per page).

b. Analyze the data for potential problems, correct data problems if necessary, and report any changes made in the first paragraph of your memo.

c. Use regression analysis to develop cost models for all potential cost drivers (include each excel regression output on the corresponding page with the plot from part a).

d. Identify the best model, and explain why. Explain what the model means from an economic perspective. Report all this in the first paragraph of your memo.

Store Location Purchasing Merchandise Number of Number of Dept. Cost Purchased Purchase Orders Suppliers Andover $575,000 $47,239,000 1,708 61 Derby 863,000 61,638,000 1,247 145 Dodge City 875,000 31,920,000 2,425 48 Emporia 856,000 88,524,000 2,878 62 Garden City 881,000 95,760,000 1,719 91 Gardner 794,000 103,464,000 3,761 117 Hays 699,000 34,121,000 967 34 Hutchinson 1,085,000 105,666,000 2,162 141 Junction City 2,216,000 96,162,000 2,584 73 Lawrence 1,341,000 84,753,000 2,978 103 Leavenworth 1,042,000 33,020,000 382 131 Leawood 952,000 59,437,000 2,822 105 Lenexa 1,226,000 102,364,000 2,519 95 Manhattan 1,134,000 38,542,000 5,115 51 Olathe 1,634,000 36,322,000 5,293 172 Overland Park 1,710,000 100,162,000 2,506 139 Prairie Village 794,000 50,631,000 647 75 Salina 1,122,000 72,645,000 819 129 Shawnee 1,338,000 65,635,000 4,347 130 Topeka 1,544,000 51,466,000 2,883 155 Wichita 2,030,000 62,364,000 5,497 176