Question: FILE Inventory _ Cost. The inventory manager at a warehouse distributor wants to predict inventory cost ( Cost in $ ) based on order quantity
FILE InventoryCost. The inventory manager at a warehouse distributor wants to predict inventory cost Cost in $ based on order quantity Quantity in units She thinks it may be a nonlinear relationship because its two primary components move in opposite directions: order processing cost costs of procurement personnel, shipping, transportation which decreases as order quantity increases due to fewer orders needed and holding cost costs of capital, facility, warehouse personnel, equipment which increases as order quantity increases due to more inventory held The accompanying data file includes monthly inventory costs and order quantities for the past months.
a Create a scatterplot of inventory cost as a function of quantity. Superimpose the linear trendline and the quadratic trendline.
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