Detailed Answer
(d) Regression analysis determines the functional relationship
between variables and provides a measure of probable
error. Multiple regression analysis involves the use of two or
more independent variables (such as the number of shipments
and the weight of materials handled) to predict one dependent
variable (inventory warehouse costs). Economic order quantity
analysis determines the amount to be ordered while minimizing
the sum of ordering and carrying costs. Probability analysis is an
application of statistical decision theory that, under conditions of
uncertainty, leads to more reliable decisions. Correlation analysis
determines the relationship between only two variables.