ASSIGNMENT You are an analyst at Delta and managers want to know the results of your analysis of the data they have given you. There are four main decisions for you to make: (1)--choose a driver (actually, choose at least 2 drivers) of salaries cost. JUSTIFY your choices. That is, what is your "theory" about why (and how) your chosen cost drivers affect salaries cost? (2)What is your cost function -for example, Salaries = a + b1(NODs) + b2(RPMs). (3)Using your cost function and estimated operational data provided below, what is your prediction of salaries cost for Delta in Q1 of 2003, Estimated operational data for Quarter 1 of 2003: ASMS ATMs NODs RAHS RMF RMS RPE RPMs RPTMs 23.3 3,348 168.2 306.1 133 134 19.9 17.3 1,672 RTMs 1,811 OR/ASM OC/ASM OC/ATM PMY 128.43 142.48 $0.99 $165.26 PLE 69.92 (4) -Would you use your cost function (in 2 above) to estimate the salaries cost for the new Song in its first year of operation? What are reasons for/against? Delta Airlines, Inc. Y dependent variable X Choose one or two (or three or four) of these to be your Xs Other Statistical Data (in millions, unless otherwise stated) Salaries & related 144 148 149 145 142 UMOJ Sof aniusnew 145 147 1993 Q1 1993 02 1993 03 1993 Q4 1994 Q1 1994 Q2 1994 Q3 1994 Q4 1995 Q1 1995 Q2 1995 Q3 1995 Q4 1996 Q1 1996 07 1996 Q3 1996 Q4 1997 Q1 1997 02 147 145 147 148 147 147 153 156 157 157 160 1997 Q3 17.9 19.8 20.6 20.1 19.0 20.9 21.5 20.8 19.5 20.4 20.3 20.4 21.2 23.3 23.6 23.2 23.2 25.1 24.8 24.1 23.3 25.8 1997 1,200 1,205 1,161 1,145 1,145 1,138 1,138 1,074 1,102 1,040 1,037 1,051 1,077 1,041 1,092 1,107 1,118 1,127 1,204 1,206 1,179 1,261 1,237 1,217 1,268 1,271 1,306 1,349 1,428 1,514 1,514 1,515 1,607 1,560 1,534 1,423 1,501 1,563 1,555 1.546 Q4 24.6 25.1 25.5 24.6 23.8 24.5 24.9 24.8 24.5 25.0 25.2 25.1 25.3 26.3 26.8 27.0 27.0 27.5 28.0 27.8 27.1 27.3 27.8 27.9 27.4 28.1 28.5 28.5 28.1 28.5 28.8 28.1 27.3 28.0 27.1 24.7 24.5 25.3 25.6 24.5 3,196 3,263 3,318 3,228 3,132 3,226 3,283 3,268 3,217 3,251 3,276 3,260 3,291 3,418 3,486 3,510 3,509 3,573 3,652 3,623 3,537 3,568 3,627 3,650 3,587 3,698 3,773 3,846 3,902 3,952 4,029 3,922 3,841 3,936 3,819 3,507 3,501 3,622 3,674 3,524 230.9 236.5 236.6 229.9 223.6 228.7 230.5 230.1 226.5 226.0 225.8 223.0 218.6 224.9 226.8 229.4 228.3 2322 234.8 233.2 227.8 230.5 229.5 229.4 224.7 228.9 228.5 229.0 224.5 225.8 225.6 223.6 219.6 225.5 214.7 196.1 196.9 202.5 202.5 177.0 341.5 344.8 345.1 339.7 333.2 338.1 340.1 341.7 339.4 340.7 339.0 341.2 345.9 352.4 357.0 365.7 369.2 372.9 375.2 378.4 372.3 373.2 376.0 380.8 377.7 383.5 381.4 387.4 384.8 386.4 387.3 387.5 381.7 387.8 373.2 338.3 341.6 348.1 346.8 322.2 147 148 150 146 145 146 148 148 147 148 149 148 152 154 157 159 159 161 165 164 161 162 167 166 166 168 170 170 171 171 173 175 169 172 174 148 148 152 153 141 163 162 158 160 163 14.0 15.5 16.5 15.5 14.7 16.1 16.9 15.8 15.1 15.9 16.3 15.9 16.8 18.6 19.3 18.3 18.5 20.0 20.3 18.9 18.4 20.6 19.8 19.1 19.2 20.8 20.9 19.4 19.1 21.8 21.7 19.2 18.2 20.1 19.0 15.9 16.7 18.3 18.8 17.6 1,402 1,547 1,645 1,550 1,468 1,607 1,686 1,584 1,505 1,592 1,631 1,594 1,678 1,856 1,930 1,827 1,852 2,003 2,033 1,890 1,844 2,056 1,975 1,914 1,917 2,083 2,093 1.938 1,914 2,179 2,166 1,922 1,821 2,012 1,899 1,588 1,674 1,829 1,877 1,760 1,580 $118.97 $127.54 1,728 $124.55 $123.55 1,822 $123.00 $118.22 1,747 $122.67 $129.99 1,647 $123.43 $126.25 1,788 $133.02 $146.14 1,856 $126.60 $120.43 1,775 $117.67 $116.95 1,677 $118.32 $116.69 1,759 $128.45 $110.52 1,793 $126.26 $110.97 1,772 $117.17 $110.44 1,839 $117.03 $132.31 2,029 $127.89 $116.65 2,101 $128.06 $111.72 2,026 $118.25 $109.85 2,036 $126.57 $113.76 2,191 $128.93 $110.03 2,223 $126.88 $111.49 2,094 $123.69 $111.73 2,030 $125.19 $112.78 2,241 $134.84 $113.05 2,156 $136.94 $117.06 2,106 $123.39 $111.94 2,096 $127.90 $114.91 2,258 $136.71 $113.87 2,267 $134.28 $122.49 2,139 $130.16 $130.72 2,099 $140.78 $128.16 2,369 $154.22 $132.69 2,344 $150.70 $133.01 2,116 $144.05 $138.39 1,988 $140.53 $144.74 2,177 $134.68 $138.74 2,044 $125.28 $134.53 1,709 $116.13 $161.64 1,808 $126.65 $144.40 1,975 $137.32 $142.34 2,008 $133.62 $148.66 1,906 $135.19 $149.98 $0.98 $193.23 56.99% $0.95 $187.28 61.51% $0.91 $178.83 64.48% $0.99 $176.96 63.01% $0.96 $183.28 61.58% $1.11 $182.99 65.55% $0.91 $173.98 67.60% $0.89 $169.73 $169.73 63.84% $0.89 $178.36 61.38% $0.85 $189.27 63.58% $0.86 $182.49 64.61% $0.85 $171.33 63.44% $1.02 $165.35 66.24% $0.90 $168.85 70.66% $0.86 $164.22 72.03% $0.85 $160.11 67.57% $0.88 $170.65 68.53% $0.85 $162.27 72.92% $0.85 $160.37 72.59% $0.86 $165.74 68.09% $0.86 $169.10 68.11% $0.86 $178.47 75.31% $0.90 $176.52 71.15% $0.86 $163.76 68.51% $0.88 $167.10 69.97% $0.87 $185.30 74.11% $0.93 $171.68 $171.68 73.39% $0.97 $169.91 68.05% $0.92 $187.50 68.05% $0.96 $201.97 76.51% $0.95 $186.98 75.13% $0.99 $188.15 68.48% $1.03 $197.58 66.61% $0.99 $175.78 71.77% $0.96 $167.99 70.01% $1.14 $166.17 64.42% $1.01 $171.92 68.33% $0.99 $175.87 72.31% $1.04 $168.58 73.35% $1.04 $173.96 71.91% 164 161 165 167 1998 Q1 1998 Q2 1998 Q3 1998 Q4 1999 Q1 1999 Q2 1999 Q3 1999 Q4 2000 Q1 2000 Q2 2000 Q3 2000 Q4 2001 Q1 2001 02 2001 Q3 2001 Q4 2002 Q1 2002 02 2002 Q3 2002 Q4 167 165 167 170 166 162 24.2 24.0 23.7 25.7 25.2 24.1 23.6 26.4 25.2 23.2 22.0 24.4 21.9 18.9 19.8 21.6 21.7 21.0 167 163 147 146 150 152 140 ASSIGNMENT You are an analyst at Delta and managers want to know the results of your analysis of the data they have given you. There are four main decisions for you to make: (1)--choose a driver (actually, choose at least 2 drivers) of salaries cost. JUSTIFY your choices. That is, what is your "theory" about why (and how) your chosen cost drivers affect salaries cost? (2)What is your cost function -for example, Salaries = a + b1(NODs) + b2(RPMs). (3)Using your cost function and estimated operational data provided below, what is your prediction of salaries cost for Delta in Q1 of 2003, Estimated operational data for Quarter 1 of 2003: ASMS ATMs NODs RAHS RMF RMS RPE RPMs RPTMs 23.3 3,348 168.2 306.1 133 134 19.9 17.3 1,672 RTMs 1,811 OR/ASM OC/ASM OC/ATM PMY 128.43 142.48 $0.99 $165.26 PLE 69.92 (4) -Would you use your cost function (in 2 above) to estimate the salaries cost for the new Song in its first year of operation? What are reasons for/against? Delta Airlines, Inc. Y dependent variable X Choose one or two (or three or four) of these to be your Xs Other Statistical Data (in millions, unless otherwise stated) Salaries & related 144 148 149 145 142 UMOJ Sof aniusnew 145 147 1993 Q1 1993 02 1993 03 1993 Q4 1994 Q1 1994 Q2 1994 Q3 1994 Q4 1995 Q1 1995 Q2 1995 Q3 1995 Q4 1996 Q1 1996 07 1996 Q3 1996 Q4 1997 Q1 1997 02 147 145 147 148 147 147 153 156 157 157 160 1997 Q3 17.9 19.8 20.6 20.1 19.0 20.9 21.5 20.8 19.5 20.4 20.3 20.4 21.2 23.3 23.6 23.2 23.2 25.1 24.8 24.1 23.3 25.8 1997 1,200 1,205 1,161 1,145 1,145 1,138 1,138 1,074 1,102 1,040 1,037 1,051 1,077 1,041 1,092 1,107 1,118 1,127 1,204 1,206 1,179 1,261 1,237 1,217 1,268 1,271 1,306 1,349 1,428 1,514 1,514 1,515 1,607 1,560 1,534 1,423 1,501 1,563 1,555 1.546 Q4 24.6 25.1 25.5 24.6 23.8 24.5 24.9 24.8 24.5 25.0 25.2 25.1 25.3 26.3 26.8 27.0 27.0 27.5 28.0 27.8 27.1 27.3 27.8 27.9 27.4 28.1 28.5 28.5 28.1 28.5 28.8 28.1 27.3 28.0 27.1 24.7 24.5 25.3 25.6 24.5 3,196 3,263 3,318 3,228 3,132 3,226 3,283 3,268 3,217 3,251 3,276 3,260 3,291 3,418 3,486 3,510 3,509 3,573 3,652 3,623 3,537 3,568 3,627 3,650 3,587 3,698 3,773 3,846 3,902 3,952 4,029 3,922 3,841 3,936 3,819 3,507 3,501 3,622 3,674 3,524 230.9 236.5 236.6 229.9 223.6 228.7 230.5 230.1 226.5 226.0 225.8 223.0 218.6 224.9 226.8 229.4 228.3 2322 234.8 233.2 227.8 230.5 229.5 229.4 224.7 228.9 228.5 229.0 224.5 225.8 225.6 223.6 219.6 225.5 214.7 196.1 196.9 202.5 202.5 177.0 341.5 344.8 345.1 339.7 333.2 338.1 340.1 341.7 339.4 340.7 339.0 341.2 345.9 352.4 357.0 365.7 369.2 372.9 375.2 378.4 372.3 373.2 376.0 380.8 377.7 383.5 381.4 387.4 384.8 386.4 387.3 387.5 381.7 387.8 373.2 338.3 341.6 348.1 346.8 322.2 147 148 150 146 145 146 148 148 147 148 149 148 152 154 157 159 159 161 165 164 161 162 167 166 166 168 170 170 171 171 173 175 169 172 174 148 148 152 153 141 163 162 158 160 163 14.0 15.5 16.5 15.5 14.7 16.1 16.9 15.8 15.1 15.9 16.3 15.9 16.8 18.6 19.3 18.3 18.5 20.0 20.3 18.9 18.4 20.6 19.8 19.1 19.2 20.8 20.9 19.4 19.1 21.8 21.7 19.2 18.2 20.1 19.0 15.9 16.7 18.3 18.8 17.6 1,402 1,547 1,645 1,550 1,468 1,607 1,686 1,584 1,505 1,592 1,631 1,594 1,678 1,856 1,930 1,827 1,852 2,003 2,033 1,890 1,844 2,056 1,975 1,914 1,917 2,083 2,093 1.938 1,914 2,179 2,166 1,922 1,821 2,012 1,899 1,588 1,674 1,829 1,877 1,760 1,580 $118.97 $127.54 1,728 $124.55 $123.55 1,822 $123.00 $118.22 1,747 $122.67 $129.99 1,647 $123.43 $126.25 1,788 $133.02 $146.14 1,856 $126.60 $120.43 1,775 $117.67 $116.95 1,677 $118.32 $116.69 1,759 $128.45 $110.52 1,793 $126.26 $110.97 1,772 $117.17 $110.44 1,839 $117.03 $132.31 2,029 $127.89 $116.65 2,101 $128.06 $111.72 2,026 $118.25 $109.85 2,036 $126.57 $113.76 2,191 $128.93 $110.03 2,223 $126.88 $111.49 2,094 $123.69 $111.73 2,030 $125.19 $112.78 2,241 $134.84 $113.05 2,156 $136.94 $117.06 2,106 $123.39 $111.94 2,096 $127.90 $114.91 2,258 $136.71 $113.87 2,267 $134.28 $122.49 2,139 $130.16 $130.72 2,099 $140.78 $128.16 2,369 $154.22 $132.69 2,344 $150.70 $133.01 2,116 $144.05 $138.39 1,988 $140.53 $144.74 2,177 $134.68 $138.74 2,044 $125.28 $134.53 1,709 $116.13 $161.64 1,808 $126.65 $144.40 1,975 $137.32 $142.34 2,008 $133.62 $148.66 1,906 $135.19 $149.98 $0.98 $193.23 56.99% $0.95 $187.28 61.51% $0.91 $178.83 64.48% $0.99 $176.96 63.01% $0.96 $183.28 61.58% $1.11 $182.99 65.55% $0.91 $173.98 67.60% $0.89 $169.73 $169.73 63.84% $0.89 $178.36 61.38% $0.85 $189.27 63.58% $0.86 $182.49 64.61% $0.85 $171.33 63.44% $1.02 $165.35 66.24% $0.90 $168.85 70.66% $0.86 $164.22 72.03% $0.85 $160.11 67.57% $0.88 $170.65 68.53% $0.85 $162.27 72.92% $0.85 $160.37 72.59% $0.86 $165.74 68.09% $0.86 $169.10 68.11% $0.86 $178.47 75.31% $0.90 $176.52 71.15% $0.86 $163.76 68.51% $0.88 $167.10 69.97% $0.87 $185.30 74.11% $0.93 $171.68 $171.68 73.39% $0.97 $169.91 68.05% $0.92 $187.50 68.05% $0.96 $201.97 76.51% $0.95 $186.98 75.13% $0.99 $188.15 68.48% $1.03 $197.58 66.61% $0.99 $175.78 71.77% $0.96 $167.99 70.01% $1.14 $166.17 64.42% $1.01 $171.92 68.33% $0.99 $175.87 72.31% $1.04 $168.58 73.35% $1.04 $173.96 71.91% 164 161 165 167 1998 Q1 1998 Q2 1998 Q3 1998 Q4 1999 Q1 1999 Q2 1999 Q3 1999 Q4 2000 Q1 2000 Q2 2000 Q3 2000 Q4 2001 Q1 2001 02 2001 Q3 2001 Q4 2002 Q1 2002 02 2002 Q3 2002 Q4 167 165 167 170 166 162 24.2 24.0 23.7 25.7 25.2 24.1 23.6 26.4 25.2 23.2 22.0 24.4 21.9 18.9 19.8 21.6 21.7 21.0 167 163 147 146 150 152 140
