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Cross Distribution Company uses two different independent variables number of orders and average weight of...

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Accounting

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Cross Distribution Company uses two different independent variables number of orders and average weight of orders) to evaluate costs of the packaging department. They have recorded several months of observation of each potential independent variable (cost driver) in the attempt to determine which cost driver might be preferred. The data is recorded in the excel file downloaded for the exam. Required: a) In Excel, perform three separate regression analyses on new tabs, one based on the weight of the orders, one based on the number of orders, and one based on both factors. Include appropriate graphs for each simple regression with labels and titles: (3 marks) b) Write down the cost function that you have derived using the multiple regression. (1 mark) c) Make a recommendation regarding which cost driver (weight of orders OR number of orders) is preferred. Support your recommendation using the criteria outlined below by explaining both what the criteria is and how it is evaluated in your regression reports. ( 8 marks) 1. Economic plausibility it Goodness of fit ii. Significance of independent variables jv. Specification analysis ( 4 criteria)

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