OMGT2229 Supply Chain Management Strategy-the following characteristics

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OMGT2229 Supply Chain Management Strategy

Question

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Task:

You are required to use the Microsoft Excel package (the data analysis section) to finish the specific tasks below.

Task 1

Plot the scatter plot for #Delivery (y-axis) and Income (x-axis). Add the trendline with the equation and R-square. Interpret the R-square and comment on the slope coefficient. Suggest one use or application for this information.

Task 2

Estimate the regression model for #delivery (Y) against price (X1). Interpret the estimated value of the coefficient for price. What are the values of the 95% confidence interval for price and what does it mean? Plot and comment on the residuals

Task 3

Estimate the regression model for #delivery (Y) against price (X1) and income (x2). What does the Rsquare say about the model? Why is the R-square in this model higher than the model in task 2 (both in terms of statistical and economics principles? Comment on the coefficients of price and income.

Why is the coefficient of price different in this model than the one in task 2 (both in terms of statistical and economics principles? What is the trade-off between income and price?

Task 4

• If you were to buy a franchise and two locations were offered to you, with the following characteristics:

If the cost of delivery is $5 a parcel and overheads (fixed cost) are the same for both locations $3000), which option would you choose. Provide evidence to support your choice.

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