Bruin Wholesale has gathered the following data on the number of shipments receivedand the cost of receiving reports for the first seven weeks of 2010.Number of Shipment ReceivedWeekly Cost of Receiving Reports50$175441624015435142531855820060202a. Using the high-low method, develop the equation for predicting weekly receiving reportcosts based on the number of shipments received.b. What is the predicted amount of receiving report costs for a week in which 72 shipmentsare received?c. What are the concerns you have regarding your prediction from part (b)?

In this question, there are different cases in which we have yo solve using high low method.

Answered: Bruin Wholesale has gathered the foll…

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Bruin Wholesale has gathered the foll and the cost of receiving reports for the

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 11P: For the Hawkins Company, the monthly percentages of all shipments received on time over the past 12...

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Question

Bruin Wholesale has gathered the following data on the number of shipments received
and the cost of receiving reports for the first seven weeks of 2010.
Number of Shipment Received
Weekly Cost of Receiving Reports
50
$175
44
162
40
154
35
142
53
185
58
200
60
202
a. Using the high-low method, develop the equation for predicting weekly receiving report
costs based on the number of shipments received.
b. What is the predicted amount of receiving report costs for a week in which 72 shipments
are received?
c. What are the concerns you have regarding your prediction from part (b)?

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