You used sales and orders to predict distribution cost (stored in Ware cost) Develop a regression model to predict distribution cost that includes sales, orders, and the interaction of sales and orders a At the 0 05 level of significance, is there evidence that the interaction term makes a signific...

a where X 1 sales X 2 orders X 3 X 1 X 2 For X 1 X 2 the pvalue is 032 ...

You used sales and orders to predict distribution cost (stored in Ware cost). Develop a regression model

Question:

You used sales and orders to predict cost (stored in Ware cost). Develop a regression model to predict cost that includes sales, orders, and the interaction of sales and orders.
a. At the 0.05 level of significance, is there evidence that the interaction term makes a significant contribution to the model?
b. Which regression model is more appropriate, the one used in (a) or the one used in Problem 14.4? Explain.
For Information: Problem 14.4
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...