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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

  1. 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.
  2. 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:

  1. 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.
  2. 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

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