Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number

image text in transcribed

Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery cost (depreciation on the van, wages of the driver, and fuel) for the past year. Month January Number of Deliveries Delivery Cost 100 $1,200 February 550 1,800 March 85 1,100 April 115 1,050 May 160 1,190 June 590 1,980 July 500 1,800 August 520 1,700 September 100 1,100 October 200 1,275 November 260 450 1,400 2,200 December Required: 1. Using a computer spreadsheet program such as Excel, run a regression on these data. Enter the amount of the intercept (rounded to the nearest whole dollar) and the amount of the X Variable 1 (rounded to the nearest cent). Intercept: $ 942 X Variable 1: $ 1.79 2. Using the above results, enter the cost formula for delivery cost. (Note: Round the fixed cost to the nearest dollar and the variable rate to the nearest cent.) Delivery cost = $ 942 + ($ 1.79 Number of deliveries 3. Conceptual Connection: What is R2 based on your results? State the answer as a percent to one decimal place. 84 X %

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

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

9th edition

9781285401072, 1111971722, 1285401077, 978-1111971724

More Books

Students also viewed these Accounting questions