DATASHEET Store Locaton Sheridan, WY Denver Salt Lake City Kansas City Omaha Milwaukee Minneapolis Phoenix Las Vegas Albuquerque Tucson Houston Oklahoma City Tulsa Dallas San Antonio Austin El Paso Nashville Memphis Indiananolis 575,000 1,226,000 1,710,000 881,000 1,544,000 794,000 1,341,000 794,000 2,216,000 2,030,000 1.338.000 856,000 1,122,000 863,000 1,085,000 952,000 1,134,000 1,042,000 1,634.000 699,000 875.000 47,239,000 102,364.000 100.162,000 95,760,000 51,466,000 50,631,000 84,753,000 103,464,000 96,162,000 62,364,000 65.635.000 88.524.000 72.645,000 61,638,000 105,666,000 59,437,000 38,542.000 33,020,000 36,322,000 34,121,000 31 990 000 1708 2519 206 1719 2883 647 2978 3761 2584 5497 4347 2878 819 1247 2162 2822 5115 382 5293 967 2475 TABL Number of Suppliers Store Location Sheridan Denver Salt Lake City Kansas City Omaha Milwaukee Minneapolis Phoenix Las Vegas Albuquerque Tucson Purchasing Dept. Cost (USS) $575,000 1,226,000 1,710,000 881,000 1,544,000 794,000 1,341,000 794,000 2,216,000 2,030,000 1,338,000 856,000 1,122,000 863,000 1,085,000 952,000 1,134,000 1,042,000 1,634,000 699,000 875,000 Merchandise Purchased (USS) $47,239,000 102,364,000 100,162,000 95,760,000 51,466,000 50,631,000 84,753,000 103,464,000 96,162,000 62,364,000 65,635,000 88,524,000 72,645,000 61,638,000 105,666,000 59,437,000 38,542,000 33,020,000 36,322,000 34,121,000 31,920,000 Number of Purchase Orders 1,708 2,519 2,506 1,719 2,883 647 2,978 3,761 2,584 5,497 4,347 2,878 819 1,247 2,162 2,822 5,115 Houston Oklahoma City Tulsa Dallas San Antonio Austin El Paso Nashville Memphis Indianapolis 5,293 967 2,425 1. Prepare a statistical analysis of the costs provided. 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. c. Use regression analysis to develop cost models for all potential cost drivers. d. Identify the best model, and explain why. e. Explain what the model means from an economic perspective. complete the regression requirement of the case by simply adding trend lines, cost equations, and r-square values to your charts. There is one outlier and at a minimum, one data keying error. should be removed prior to performing your regression. keying error(s), compare Table 1 in the Case to the data sheet. your regression determine the outlier record which To determine Fix the error(s) before performing DATASHEET Store Locaton Sheridan, WY Denver Salt Lake City Kansas City Omaha Milwaukee Minneapolis Phoenix Las Vegas Albuquerque Tucson Houston Oklahoma City Tulsa Dallas San Antonio Austin El Paso Nashville Memphis Indiananolis 575,000 1,226,000 1,710,000 881,000 1,544,000 794,000 1,341,000 794,000 2,216,000 2,030,000 1.338.000 856,000 1,122,000 863,000 1,085,000 952,000 1,134,000 1,042,000 1,634.000 699,000 875.000 47,239,000 102,364.000 100.162,000 95,760,000 51,466,000 50,631,000 84,753,000 103,464,000 96,162,000 62,364,000 65.635.000 88.524.000 72.645,000 61,638,000 105,666,000 59,437,000 38,542.000 33,020,000 36,322,000 34,121,000 31 990 000 1708 2519 206 1719 2883 647 2978 3761 2584 5497 4347 2878 819 1247 2162 2822 5115 382 5293 967 2475 TABL Number of Suppliers Store Location Sheridan Denver Salt Lake City Kansas City Omaha Milwaukee Minneapolis Phoenix Las Vegas Albuquerque Tucson Purchasing Dept. Cost (USS) $575,000 1,226,000 1,710,000 881,000 1,544,000 794,000 1,341,000 794,000 2,216,000 2,030,000 1,338,000 856,000 1,122,000 863,000 1,085,000 952,000 1,134,000 1,042,000 1,634,000 699,000 875,000 Merchandise Purchased (USS) $47,239,000 102,364,000 100,162,000 95,760,000 51,466,000 50,631,000 84,753,000 103,464,000 96,162,000 62,364,000 65,635,000 88,524,000 72,645,000 61,638,000 105,666,000 59,437,000 38,542,000 33,020,000 36,322,000 34,121,000 31,920,000 Number of Purchase Orders 1,708 2,519 2,506 1,719 2,883 647 2,978 3,761 2,584 5,497 4,347 2,878 819 1,247 2,162 2,822 5,115 Houston Oklahoma City Tulsa Dallas San Antonio Austin El Paso Nashville Memphis Indianapolis 5,293 967 2,425 1. Prepare a statistical analysis of the costs provided. 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. c. Use regression analysis to develop cost models for all potential cost drivers. d. Identify the best model, and explain why. e. Explain what the model means from an economic perspective. complete the regression requirement of the case by simply adding trend lines, cost equations, and r-square values to your charts. There is one outlier and at a minimum, one data keying error. should be removed prior to performing your regression. keying error(s), compare Table 1 in the Case to the data sheet. your regression determine the outlier record which To determine Fix the error(s) before performing