A manufacturer has found that they underestimated their total budget for freight charges They budgeted the average cost per car from all cities (Figure 1) Figure 1 Freight Cost per Car Location Freight Cost per car San Diego, CA $1,800 00 Bath, ME $1600 00 Minneapolis, MN $1,500 00 Gary, IN $500 00 New York, NY $2200 00 1a 1b Based on the data set of monetary freight cost per car calculate the mean freight cost that the manufacturer budgeted for each car and the total budget based on selling 170 cars The mean freight cost that the manufacture budgeted for each car sold is $1520 This is derived by adding the average freight cost per car for each location and dividing the sum by 5 (the number of location) ($1800 $1600 $1500 $500 $2200) 5 The total budget based on selling 170 cars is $258,400 which is derived by multiplying the mean freight cost by 170 cars ($1520 x 170) If you're unfamiliar with using formulas in Excel, click on the Help meu and search for mean or average Provide a summary of your calculated findings 1b Discuss factors that would make shipping costs differ from location to location Factors that would make shipping cost differ from one location to another are mode of transportation, weight, size, distance, points of pick up and delivery, and the actual goods being shipped The manufacturer has some additional information about the freight charges based on the number of cars shipped to each city Figure 2 Cars Sold Per Location Location of Cars Shipped San Diego, CA 20 Bath, Me 20 Minneapolis, MN 20 Gary, IN 10 New York, NY 100 Total 170 2a Based on the data set of freight charges per city (Figure 1), and the data set of number of vehicles shipped for each city, calculate the Mean freight cost per car shipped and the total cost of freight charges for all 170 cars Provide a brief summary of your calculated findings The mean freight cost is $1900 This is derived by dividing the total cost of freight charges by 170 cars ($323,000 170) The total cost of freight charges is $323,000 which is derived by multiplying the average freight cost per car by the of cars shipped foreach location, then get the sum of all total freight cost for each location (1800 x 20) (1600 x 20) (1500 x 20) (500 x 10) (2200 x 100) 2b Discuss why the estimates of the mean and total differ between questions 1a and 2a The estimates of the mean and total differ between questions 1a and 2a because the of cars shipped for each location was not considered in question 1a 2c How should the manufacturer estimate freight charges for next year The manufacturer should consider the estimated of cars to be shipped for each location and the average freight cost per car to get the estimate freight charges for next year What do you know about the role variation played in this scenario The most common measure of variation for numerical data is Standard Deviation The Standard Deviation measures how concentrated the data is around the Mean the more concentrated, the smaller the Standard Deviation It's not reported nearly as often as it should be, but it is, you often see it in the parentheses (s 1 64)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

A manufacturer has found that they underestimated their total budget for freight charges. They budgeted the average cost per car from all cities.(Figure 1) Figure

A manufacturer has found that they underestimated their total budget for freight charges. They budgeted the average cost per car from all cities.(Figure 1)

Figure 1 Freight Cost per Car

Location	Freight Cost per car
San Diego, CA	$1,800.00
Bath, ME	$1600.00
Minneapolis, MN	$1,500.00
Gary, IN	$500.00
New York, NY	$2200.00

1a. 1b. Based on the data set of monetary freight cost per car calculate the mean freight cost that the manufacturer budgeted for each car and the total budget based on selling 170 cars.

The mean freight cost that the manufacture budgeted for each car sold is $1520. This is derived by adding the average freight cost per car for each location and dividing the sum by 5 (the number of location).

($1800 + $1600 + $1500 + $500 + $2200)/5

The total budget based on selling 170 cars is $258,400 which is derived by multiplying the mean freight cost by 170 cars. ($1520 x 170)

If you're unfamiliar with using formulas in Excel, click on the Help meu and search for mean or average.

Provide a summary of your calculated findings.

1b. Discuss factors that would make shipping costs differ from location to location.

Factors that would make shipping cost differ from one location to another are mode of transportation, weight, size, distance, points of pick up and delivery, and the actual goods being shipped.

The manufacturer has some additional information about the freight charges based on the number of cars shipped to each city.

Figure 2 - Cars Sold Per Location

Location	# of Cars Shipped
San Diego, CA.	20
Bath, Me.	20
Minneapolis, MN.	20
Gary, IN.	10
New York, NY.	100
Total	170

2a. Based on the data set of freight charges per city (Figure 1), and the data set of number of vehicles shipped for each city, calculate the Mean freight cost per car shipped and the total cost of freight charges for all 170 cars. Provide a brief summary of your calculated findings.

The mean freight cost is $1900. This is derived by dividing the total cost of freight charges by 170 cars. ($323,000/170).

The total cost of freight charges is $323,000 which is derived by multiplying the average freight cost per car by the # of cars shipped foreach location,then get the sum of all total freight cost for each location. [(1800 x 20) + (1600 x 20) + (1500 x 20) + (500 x 10) + (2200 x 100)]

2b. Discuss why the estimates of the mean and total differ between questions 1a and 2a.

The estimates of the mean and total differ between questions 1a and 2a because the # of cars shipped for each location was not considered in question 1a

2c. How should the manufacturer estimate freight charges for next year?

The manufacturer should consider the estimated # of cars to be shipped for each location and the average freight cost per car to get the estimate freight charges for next year.

What do you know about the role variation played in this scenario?

The most common measure of variation for numerical data is Standard Deviation.

The Standard Deviation measures how concentrated the data is around the "Mean"; the more concentrated, the smaller the Standard Deviation. It's not reported nearly as often as it should be, but it is, you often see it in the parentheses (s = 1.64)