Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kristen Rafferty, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat

image text in transcribedimage text in transcribed

image text in transcribed

Kristen Rafferty, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Rafferty wants to set the delivery fee based on the distance driven to deliver the flowers. Rafferty wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a scatter plot of Flower Paradise's volume (miles driven) and van operating costs. Plot the points on the graph now. (Enlarge the graph and use the point tool button displayed below to draw the graph.) Relationship of Van Operating Costs to Miles Driven Van operating cost Click to enlarge graph KA 13,0004,0005,0006,0007,0008,0009,000 Miles driven Requirement 2. Does the data appear to contain any outliers? Explain. The data to contain outliers. All data points fall in Requirement 3. How strong of a relationship is there between miles driven and van operating expenses? There appears to be relationship between van operating costs and miles driven. We can tell this because the data points fall in a Month Miles Driven 15,900 18,000 Van Operating Costs $5,420 $5,460 15,300 $5,100 January February..... March ....... April.... May June 16,300 $5,290 $5,520 17,000 15,700 $5,150 July 15,000 $4,950 Relationship of Van Operating costs to Miles Driven Van operating cost $6,200- $6,100- $6,000- $5,900- $5,800 $5,700- $5,600- $5,500- $5,400- $5,300- $5,200- $5,100- $5,000- $4,900- $4,800- $4,700- $4,600- $4,500- $4,400- $4,300- $4,200- $4,100- $4,000+ 13,000 14,000 15,000 17,000 18,000 16,000 Miles driven 19,000 Kristen Rafferty, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Rafferty wants to set the delivery fee based on the distance driven to deliver the flowers. Rafferty wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare a scatter plot of Flower Paradise's volume (miles driven) and van operating costs. Plot the points on the graph now. (Enlarge the graph and use the point tool button displayed below to draw the graph.) Relationship of Van Operating Costs to Miles Driven Van operating cost Click to enlarge graph KA 13,0004,0005,0006,0007,0008,0009,000 Miles driven Requirement 2. Does the data appear to contain any outliers? Explain. The data to contain outliers. All data points fall in Requirement 3. How strong of a relationship is there between miles driven and van operating expenses? There appears to be relationship between van operating costs and miles driven. We can tell this because the data points fall in a Month Miles Driven 15,900 18,000 Van Operating Costs $5,420 $5,460 15,300 $5,100 January February..... March ....... April.... May June 16,300 $5,290 $5,520 17,000 15,700 $5,150 July 15,000 $4,950 Relationship of Van Operating costs to Miles Driven Van operating cost $6,200- $6,100- $6,000- $5,900- $5,800 $5,700- $5,600- $5,500- $5,400- $5,300- $5,200- $5,100- $5,000- $4,900- $4,800- $4,700- $4,600- $4,500- $4,400- $4,300- $4,200- $4,100- $4,000+ 13,000 14,000 15,000 17,000 18,000 16,000 Miles driven 19,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Focus On Interpretation And Analysis

Authors: Richard F Kochanek, A Douglas Hillman

7th Edition

1111061750, 9781111061753

More Books

Students also viewed these Finance questions

Question

Is there text to go with the images?

Answered: 1 week ago