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Mendota Foods sells a varlety of food products around the world. The company engages directly with Individuals with an interest in cooking by offering ideas

Mendota Foods sells a varlety of food products around the world. The company engages directly with Individuals with an
interest in cooking by offering ideas and recipes in varlous staff blogs and podcasts. The management team at Mendota
belleves this drives brand loyalty and allows Mendota to charge a premlum for its products.
One initlative that Mendota has been running for the last three years is a call center with staff who can provide help and
answer questions about cooking in general and Mendota products in particular. The chlef financial officer is interested in
learning more about the costs of this initiative and how they vary with the demands placed on the center. To help answer
the question, the financial staff have collected call center volume (number of calls) and call center cost for the last 12
months.
During a discussion of those results, one of the cost analysts suggests that length of the calls (total hours) is probably a
better driver of call center costs. The managers asked the analyst to collect the information and report on how it should be
used. The combined data follow:
d-1. Enter the regression coefficients.
d-2. Estimate the cost for a month with 16,000 hours of call center time using the results from a simple regression of call center cost on call center time (hours).
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