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ONLY ANSWER QUESTION D PLEASE Team 2) Marcus Foods is a food distributor. Soy beans are a critical source of their revenue but have been
ONLY ANSWER QUESTION D PLEASE
Team 2) Marcus Foods is a food distributor. Soy beans are a critical source of their revenue but have been subject to regular recalls for e-coli which has caused the firm losses. Over the last 6 years, the Risk Manager has tracked the weight of produced soy beans (in 000s) along with the costs (in 000s) to refund and recycle the returned soy beans: Year kg of soy bean produced Return Costs 2,557 $1,332 2017 2018 2019 2020 2021 1,992 3,455 3,991 2,887 $1,022 $2,921 $3,044 2022 2.711 $1,554 $1,995 a) The Risk Manager was asked to research this trend with a production goal of 2,900 in 2023. Using regression analysis, create a graph and estimate the amount of return costs in 2023. b) The Risk Manager believes that QC improvements through use of 3rd party subrogation could've reduced return costs by 15% for 2022. Assuming 2.900 production in 2023 and 15% lower costs in 2022. using regression analysis, create a graph and calculate the estimated return costs in 2023. c) Explain in 1-2 sentences the value of each answer in a and b. d) Using Prouty, explain what loss strategy you would select for this risk factor and why.
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