In: Statistics and Probability
1)To what extent is there a change in the pattern or the power of the relationship Pre- and Post- COVID-19 between the daily inventory holding cost (X) and the daily sales (Y)? Support your answer with the appropriate statistical evidences.
Since I answered previous question, I think the data is same because you have not provided.
Pre-covid 19
Linear relationship is not good but sales increase with increase in cost
better
even better as R-sq increases
Best with 99.78% variability in Sales explained by Inventory Cost (X)
Now,
Post Covid =19 for same plot:
Linear is also meaningful here as it explains 77.45% variability but here, sales decrease with increase in cost
So, model/relationship has indeed changed
Please rate my answer and comment for doubt.