| History of costs | ||||||||||
| Services provided | Operating expenses | |||||||||
| January | 3,800 | $57,800 | ||||||||
| February | 3,200 | $51,300 | ||||||||
| March | 3,400 | $52,250 | ||||||||
| April | 3,300 | $51,900 | ||||||||
| May | 4,100 | $56,400 | ||||||||
| June | 3,500 | $53,100 | ||||||||
Required:1. Find the cost equation for total cost: Total cost = Fixed Cost + Variable Cost*Activity2. Predict the total cost for 4,000 services3. Comment on the quality of the prediction. If you used a regression package like the 'Data Analysis' add-in, what was the R2 for the regression and what does that mean? Whether you used a regression package or not,were the actual costs for the months nearest 4,000 services about where they should be using the cost predictions? 4. If you had enough influence over the local economy that you could set prices, at what retail price would you set services if you wished to make $10,000 in a month where there were 4,000 services?
| History of costs | History of costs | |||||||||||||||||||||
| Services provided | Operating expenses | Services provided | Operating expenses | a | b | |||||||||||||||||
| January | 3,800 | $57,800 | X | Y | (X-Average X) | (Y-Average Y) | a x b | a2 | ||||||||||||||
| February | 3,200 | $51,300 | January | 3,800 | $57,800 | (3,800 – Average X) | (57,800 – Average Y) | multiply the two columns | square the first column | |||||||||||||
| March | 3,400 | $52,250 | February | 3,200 | $51,300 | |||||||||||||||||
| April | 3,300 | $51,900 | March | 3,400 | $52,250 | |||||||||||||||||
| May | 4,100 | $56,400 | April | 3,300 | $51,900 | |||||||||||||||||
| June | 3,500 | $53,100 | May | 4,100 | $56,400 | |||||||||||||||||
| June | 3,500 | $53,100 | ||||||||||||||||||||
| Average | Ave(X) | Ave(Y) | Total = | Sum of a x b | Sum of a2 | |||||||||||||||||
| Results: | Slope = | Sum of a x b | = | slope | ||||||||||||||||||
| Sum of a2 | ||||||||||||||||||||||
| Intercept = | Average Y | – (slope x Average X) | Intercept | |||||||||||||||||||
Required:1. Find the cost equation for total cost: Total cost = Fixed Cost + Variable Cost*Activity2. Predict the total cost for 4,000 services3. Comment on the quality of the prediction. If you used a regression package like the 'Data Analysis' add-in, what was the R2 for the regression and what does that mean? Whether you used a regression package or not,were the actual costs for the months nearest 4,000 services about where they should be using the cost predictions? 4. If you had enough influence over the local economy that you could set prices, at what retail price would you set services if you wished to make $10,000 in a month where there were 4,000 services?
First! Find Average Services Provided and Average Operating Expenses
Second! Find the deviations from Ave(x) and Ave(y) for each observation
Three and four! Multiple the two columns and square the first column
To do this by hand.
Five and six! Find the slope and the intercept
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments