Question
Estimate the salary cost function for Delta. Despite the fact you can choose between some feasible drivers, please use Revenue Passenger Miles for this part
- Estimate the salary cost function for Delta. Despite the fact you can choose between some feasible drivers, please use Revenue Passenger Miles for this part of the case. Use the High Low method.
- Estimate the salary cost function for JetBlue. Use the high low method.
Now, let's discuss the results!
I've done this portion, I need help cross-checking via simple linear regression. Here's my high-low information:
Delta Salary cost Function - High/Low Method 7.8 570 0.013684211
JetBlue Salary Cost Function - High/Low Method
1417.02 42.94
Comparision of Cost Function(s):
Delta:
Total Variable Cost 14.2069 33
Fixed Cost Estimate -0.207 Jet Blue:
Total Variable Cost 686.88 Fixed cost estimate -87.48
Here's the question I need help with:
- Maybe it is the cost separation method!. Please redo 1 (above) and 2 (above)by using simple linear regression?An attachment with the tables is available for you to use. No need to discuss this question.
- Did the result and conclusions of your analysis change after answering 2?
Here's the info provided:
Revenue Passenger Miles:
All 4 Quarters 2001-2002
18.2
20.1
19
15.9
16.7
18.3
18.8
17.6
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started