Question: A warehouse manager is examining the process distribution to find out the factors that affect warehouse distribution costs. Currently, a small handling fee is added

A warehouse manager is examining the process distribution to find out 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 have been taken over the past 10 months indicating thewarehouse distribution costs and the number of orders received. The results are shown below.

Months

Distribution costs($)

Number of orders

1

627 312

2

216 376

3

1215 920

4

906 956

5

1016 943

6

753 600

7

591 473

8

378 274

9

463 538

10

974 713

  1. Compute the simple linear regression coefficients, b0 and b1, and state the linear regression model.

Here,

Let x be the number of orders and y be the distribution costs

Months y x y2 x2 xy
1 627 312 393129 97344 195624
2 216 376 46656 141376 81216
3 1215 920 1476225 846400 1117800
4 906 956 820836 913936 866136
5 1016 943 1032256 889249 958088
6 753 600 567009 360000 451800
7 591 473 349281 223729 279543
8 378 274 142884 75076 103572
9 463 538 214369 289444 249094
10 974 713 948676 508369 694462
Total 7139 6105 5991321 4344923 4997335

Mean for

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