Create a scatter plot (Learning Objective 3) Alice Jungemann, owner of Flower Power, operates a local chain
Question:
Create a scatter plot (Learning Objective 3)
Alice Jungemann, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months:
February and May are always Flower Power’s biggest months because of Valentine’s Day and Mother’s Day, respectively.
1. Prepare a scatter plot of Alice’s volume (miles driven) and van operating costs.
2. Does the data appear to contain any outliers? Explain.
3. How strong of a relationship is there between miles driven and van operating costs?
Step by Step Answer:
Managerial Accounting
ISBN: 9780138129712
1st Edition
Authors: Linda Smith Bamber, Karen Wilken Braun, Jr. Harrison, Walter T.