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Run a multiple regression that includes five possible cost drivers. You should omit any redundant variables that are perfectly correlated. a . What percentage of
Run a multiple regression that includes five possible cost drivers. You should omit any redundant variables that are perfectly
correlated.
a What percentage of the total variation in operating cost can be explained by all five cost drivers combined?
Note: Round your answer to the nearest whole percentage.
Percentage of total variation
b What percentage of the variation in operating cost is NOT explained this by this model?
Note: Round your answer to the nearest whole percentage.
Percentage of variation
Use the multiple regression model to predict the total annual operating cost for next year if the company expects total
meals produced donated and customer meals combined direct labor hours, meal kits delivered, new menu items,
and shipments of donated meals.
Be sure to multiply the intercept by weeks to convert from weekly to annual fixed cost.
Note: Round your final answer to the nearest $to avoid rounding errors in the individual coefficients
Total annual operating cost for next year $
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