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Emory and Alan just learned a cool new trick: how to predict costs using a given cost driver in Excel. They were proud of
Emory and Alan just learned a cool new trick: how to predict costs using a given cost driver in Excel. They were proud of themselves and decided to run an experiment of sorts. Since they were college roommates, they had 9 months of data on all of their food costs: trips to the cafeteria, eating out, and grocery store receipts. Emory's family lives 3 hours away, while Alan's parents are a short 30-minute drive from campus. Both students wanted to estimate their monthly food costs using the number of nights spent in the apartment, since being there meant eating, one way or another. Each student counted as "one" in the records for each night he slept in the apartment, meaning there was a maximum of 60 nights possible to be spent in their apartment in September. The data they collected over the 9 months is shown here: Month Number of Nights in Apartment Food Expense September 45 $512 October 50 465 November 42 387 December 25 390 January 38 426 February 54 547 March 47 322 April 53 289 May 36 226 (b) Run a regression model to explain total food expenses using number of nights spent in the apartment each month. Specifically, identify the variable cost per night and the fixed cost per month. Write out the full regression equation in the Y- m(X) + b format. (Round answers to 2 decimal places, e.g. 15.25.) Y-$ X+$
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