HouseSquare FeetExternal OpeningsCosts12,50013$2,81023,01015$3,74232,80012$3,10042,85012$3,15054,60019$4,70062,70013$3,22572,60011$2,92082,55011$2,83692,60010$3,242103,70016$4,112112,65013$3,210123,55016$3,965Required1. Using the high-low cost estimation technique and square feet as the independent variable, determine the cost of painting a 3,300-square-foot house with 14 external openings. Also determine the cost for a 2,400-square-foot house with 8 externals openings.2. Repeat requirement 1, but use number of external openings as the independent variable.3. Plot the cost data against square feet and against openings. Which variable is a better cost driver? Why?4. a multiple regression model for predicting cost based on openings and square feet.Comment on the statistical reliability and precision of the model.5. What are the sustainability issues for this company, and what is the role of cost estimation in this regard?

The Mac Davis Company specializes in the purchase, renovation, and resale of older homes. Jess employs several carpenters and painters to do the work for him. It is essential for him to have accurate cost estimates so he can determine total renovation costs before he purchases a piece of property. If estimated renovation costs plus the purchase price of a house are higher than its estimated resale value. the house is not a worthwhile investment. Mac has been using the home's interior square feet for his exterior paint cost estimations. Recently he decided to include the number of external openings-the total number of doors and windows in a house-as a cost driver. Their cost is signicant because they require time consuming preparatory work and careful brushwork. The rest of the house usually is painted either by rollers or spray guns. which are relatively efcient ways to apply paint to a large area. Mac has kept careful records of these extemal painting costs on his last 12 jobs: mmwmmeMn _;_;_. NlD _._; A! External House Sguare Feet Openings Costs 1 2.500 13 $2.810 2 3.010 15 $3.742 3 2.800 12 $3.100 4 2.850 12 $3.150 5 4.600 19 $4.700 6 2.700 13 $3,225 7 2.600 11 $2.920 8 2.550 11 $2,836 9 2.600 10 $3,242 10 3.700 16 $4.1 12 11 2.650 13 $3.210 12 3.550 16 $3.965 32 Re uired 1. Using the high-low cost estimation technique and square feet as the independent variable. determine the cost of painting a 3.300square-foot house with 14 external openings. Also determine the cost for a 2.400-square-foot 2. Repeat requirement 1. but use number of external openings as the independent variable. 3. Plot the cost data against square feet and against openings. Which variable is a better cost driver? Why? 4. Create a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of the model. 5. What are the sustainability issues for this company. and what is the role of cost estimation in this regard