NAME:

SCORE:

1. LAMION SYA Bakery offers a make-to-order business that sells outrageous-cakes,

init-pandesal, and monay-namakakulot, and they also maintain several bakery outlets
throughout Davao for these distribution of products made-to-order. Tita Barbs the owner
is currently examining the process of distribution from these bakery outlets and is
interested in studying the factors that affects the outlet’s distribution costs. Currently,
they have integrated a small handling fee in availing food panda’s delivery service,
regardless of the amount of the order.

The following are the data that indicates the outlets distribution costs and the number of
orders received have been collected over the past 24 months and stored in Lamion Sya
Bakery located in Jacinto RM 201.
The results are

A. Assuming a linear relationship, use the least-squares method to find the regression
coefficients b0 and b1. 


B. Predict the monthly outlet’s distribution costs when the number of orders is 4,500. 


C. Plot the residuals versus the time period. 


D. Compute the Durbin-Watson statistic. At the 0.05 level of 
significance, is there

evidence of positive autocorrelation 
among the residuals? 


E. Based on the results of (c) and (d), is there reason to 
question the validity of the
model?