Question
Alexis runs an organic vegetable delivery service with a fleet of delivery vans. He wants to determine how much of his monthly delivery vehicle cost
Alexis runs an organic vegetable delivery service with a fleet of delivery vans. He wants to determine how much of his monthly delivery vehicle cost is based on kilometres driven and how much is based on fixed costs. Using kilometres driven as the cost driver, he ran a regression analysis, which gave the following results: SUMMARY OUTPUT Regression Statistics Multiple R 0.969681546 R Square 0.940282301 Adjusted R Square 0.936964651 Standard Error 408.2661716 Observations 20 ANOVA df SS MS F Significance F Regression 1 47240500.95 47240501 283.4182 1.84E-12 Residual 18 3000262.803 166681.3 Total 19 50240763.75 Coefficients Standard Error t-stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 10055.33333 4549.9 2.210012 6.39E-21 9641.008 10469.66 9641.008 10469.66 X Variable 1 5.0757576 191.25 2.797782 1.84E-12 468.3011 601.8504 468.3011 601.8504 Alexis estimates that, for the next month, his vans will travel 20,000 kilometres. What are the total fixed and variable delivery costs estimated to be for the next month, based on the regression analysis output? Do not round interim numbers. a) $66,011 b) $101,515 c) $106,065 d) $111,570
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