Lance Welsh Case 1 (Delta’s New Song) Accounting 581 Professor Thornock Case Study Questions 1. Q. Identify several possible drivers of salary costs for use in estimating a salary cost function. Using one of these cost drivers, apply the High-Low technique to estimate the salary cost function for the Delta Airlines. What driver did you select and why? How would Delta use this function to forecast costs? What are the advantages of this technique? The disadvantages? A. Some of the possible drivers of salary cost are Number or Departures, Revenue Ton Miles, Revenue Miles scheduled, Revenue passenger miles and there are countless more you could use. High low method for revenue Ton Miles (High-2,369, low-1,580) by …show more content…
Again, this method only uses one variable but shows us the best variable to use. If we use multiple regression models we would be able to get a more accurate result. 3.The three drivers I chose were 1.) available Ton miles 2.) Number of Departures 3.)Revenue Passengers Miles These three drivers had the best R square values and that is why I chose them. This method is a considerable upgrade from all of the other methods and gives us the best available outcome. This outcome takes multiple variables and combines them into one equation. The multiple regressions R square(.8615) is higher than the single regression so there is some conflict with the method. 4. For the questions 1-3 we found out a couple different cost functions that could be useful for Delta when predicting salaries for 2003 and 2004. The multiple regressions may be most reliable considering it uses multiple variables, but the single R square is better than multiple regressions. 5. I used the Average Ton Miles as well for Jet Blue because it had the lowest R square for the previous example. (202,610-60,246)/(49-16)=142,364,000/33,000,000= 4.314. This doesn’t tell us a lot in direct correlation because it only takes one variable and it takes the two extremes of that variable. 6. I think It reasonable to assume that Delta can expect right around 24(number in thousands) for revenue passengers emplaned in the
The decision can be made even without an agreement on objectives. On the contrary, the root method that is although more for an ideal world would make a better effect. It combines such positive features like being more theory oriented and assuming complete knowledge. It gives possibility of making a choice among several alternative solutions, not the first available and etc.
Wages and salaries were separated in the report to show the expense of five different kinds of
In examining the results, the first thing we notice is the “R Square” value is 0.7471. This represents the multiple coefficient of determination (r2), which is basically a measure of goodness of fit of the equation estimated by the analysis. This means that the size of the car roughly accounts for 74.6% of the variance in the cost-per-mile of owning it—which is a rather large
The topic is: The cleanest cleaner. In this experiment, the scientists will be testing which brand of detergents cause a better cleaning effect on one stain on multiple white shirts. The independent variable in this experiment consists of the different detergents, while the dependent variable consists of the amount by which the stain faded (using the purple light scale), and or removed, others include the white t shirts, washing cycle, and drying cycle, staining agent, and cycle of drying and washing. The control variable in this experiment will be the 1 trial run with water only per experiment. The unit while measuring the amount of detergent is mL, and a scale which the is going to use to measure the amount of stain faded.
Exercises 12.17, 12.21, and 12.43 require the use of the “Regression” function within the Data Analysis menu in Excel. Refer to Appendix E12 for instructions on using Excel for these exercises.
carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).
from the baseline, what was the Rf for each of these two components of the
(1) TIME ALLOWED – 3 Hours (2) TOTAL NUMBER OF QUESTIONS – 6 (3) ANSWER ALL QUESTIONS (4) THE QUESTIONS ARE OF EQUAL VALUE (5) THIS PAPER MAY NOT BE RETAINED BY THE CANDIDATE (6) ONLY CALCULATORS WITH AN AFFIXED “UNSW APPROVED” STICKER MAY BE USED (7) STATISTICAL FORMULAE ARE ATTACHED AT END OF PAPER STATISTICAL TABLES ARE ATTACHED AT END OF
The resulting data was then analyzed for each structure. A regression equation was provided and resulting annual salaries for each position based on allocation of evaluation points was calculated. A table providing minimum, first quartile, average, median, third quartile, and maximum pay for each position in the structure based on the data was also provided. Using this information and the pay policy level decisions on whether or not to lead or lag the market a preliminary pay level for each position was also reached. Whether or not to overlap pay grades came into consideration when deciding on the spread for each structure. Depending on overlap in compensable factors between structures a spread of 50% or 10% was chosen. For example, in the customer service structure the positions have little in common and thus a 10% spread in order to have no overlap was chosen while for the software engineering structure the positions included a lot of overlap in knowledge and skills thus the spread of 50% was chosen.
There are several possible factors that seem more relevant to be as a cost diver to estimate Delta’s salaries:
1. Identify several possible drivers of salary costs for use in estimating a salary cost function. Using one of these cost drivers, apply the high-low technique to estimate the salary cost function for Delta Airlines. What driver did you select and why? How would Delta use this function to forecast costs? What are the advantages of this technique? The disadvantages?
Some of the ways costs are figured in the airline industry are as follows: available seat miles, revenue passenger miles, load factor, and revenue per available seat miles. The available seat miles calculation is the “number of seats available multiplied by the number of miles flown” (Wikipedia, 2007). The revenue passenger miles calculation is the
Estimate the effect on income of each of the options Rowe has suggested if Bradley estimates as follows:
CO 5124 Data Analysis & Decision Modeling Tutorial : B By Madhumita Srinivasan (12772343) Submitted to Dr.Eddie Chng