Prior to my wife and I moving into our home in 2013, we wanted to price out flooring for our house. We went to several flooring installation stores in an attempt to find the best quality and service, for the cheapest price. I honestly could not remember the exact prices for all of the estimates we received, however, the information can still be used in creating an example of linear regression. We can use the equation of the estimated regression line in this example; which is exactly how I calculated the final cost for our flooring. While receiving our estimates, the common factor was old flooring removal. This cost was constant at around $90.00 per room. My wife and I were only inquiring about one room, so this constant of $90.00 (90) …show more content…
Also, notice that the positive slope of $1.59 per square foot indicates that the total cost of flooring installation for a room goes up as the total square footage of the room increases, reflecting a direct relationship between the two variables. We actually do not have to stop there either. We can conduct a multiple regression analysis as well. Say, for example, there was an outside entry way that we wanted to have as tile flooring in the room as well. We can use the same information above, with estimating that the cost of tile flooring to be $0.99 per square foot. Now, let’s re-write our equation as such: Y = a + b1X1 + b2X2 Where, a = Y-Intercept = $90 b1 = Cost of Hardwood Per Square Foot = $1.59 X1 = Square Footage of Hardwood Flooring Area b2 = Cost of Tile Per Square Foot = $0.99 X2 = Square Footage of Tile Flooring Area Y = Total Cost of Flooring Installation for Room Hence, Y = 90 + 1.59X1 + 0.99X2 Now, let us say that we would like to have 225 square feet of hardwood flooring and 25 square feet of tile flooring for the room. When we input our numbers, we find the following: Y = 90 + 1.59(225) + 0.99(25) = 90 + 357.75 + 24.75 = $472.50 Therefore, the total cost of having both hardwood and tile flooring in the room would cost (before taxes) $472.50. In the real world, linear regression is used to help
We have data out of 250 stores. The data include demographics, economics, sales of the stores, compositions of those sales as well as sales behavior per households. There are 31 variables being consider for each store and those variables range from sales,
The case involves the decision to locate a new store at one of two candidate sites. The decision will be based on estimates of sales potential, and for this purpose, you will need to develop a multiple regression model to predict sales. Specific case questions are given in the textbook, and the necessary data is in the file named pamsue.xls.
($372 + $135 + 500) / ($2.21 - ($0.83 + .40)) = 1,028 [+/- 31]
= Unit Selling Price – Unit Variable Cost = $9.00 – ($1.25 + $0.35 + $1.00) = $6.40
Multiplying $829.37 times 50 yields $41,468.50. When added to the costs of using Chicago ($109,470), the total cost now
24,675 = (18% x 1175 x 1.5 x base wage rate) + (82% x 1175 x base wage rate)
The product my business has chose to produce is water bottles. After some research it can be said that the typical production cost of one water bottle unit is $20. Total fixed costs for my company including rent and utilities are $4000 per month. Given these numbers a linear cost function for my product can be constructed; C(x) = 20x + 4000. In this equation x represents water bottles produced each month at a price of $20 along with $4000 of total fixed costs. An estimated total cost per month can then be determined of $120,000 looking at what the company can afford. Using the cost function C(x), we can plug in 120,000 to then determine the number of water bottles produced each month, which will be x. The beginning equation is C(120000) = 20x + 4000, begin by subtracting 4000 from each side leaving us with 116000 = 20x then divide both sides of the equation by 20 to get a final answer of x = 5800. This is the number of bottles produced each month.
o This decision model assumes that variable costs, such as materials and labor, are linear over the relevant range; that is, there are no volume discounts on material, and that addition of more labor does not incur further costs.
Hardwood floor can be finished using high power sanding machines, although some handwork may be necessary in places that on which a sanding machine will not fit, or near corners. Before starting the finishing process, the hardwood surface should be free of dirt and all nails must be carefully driven so they are not protruding in the floor or the baseboard. Depending on the hardwood flooring surface, sometimes with two sanding cuts, you will get a nice finish whatsoever, if the floor is uneven, then three sanding cuts will be needed.
Our huge selection of strong, designed, laminated, and plastic board products provides you wood flooring choices for each room within your house. Protect entrances with floor pads to avoid corrosives from being monitored in. Pads over many position places (like a drain) can lessen tile wear.
The enduring allure of wood floors is in its ageless appearance and also the value it adds to your residence. I only cut the casing and also the doorjamb---a shoe molding may ultimately be installed to hide the gap between the flooring and the foundation trim. The aesthetic here is a silent class, and it is best summarized by the brilliant W-Age group, which presents a timber design showing the distinct cross cut element of the sawn log. Vinyl remains the most affordable type of sturdy flooring, it's softer and warmer than ceramic tiles and is resistant to water so ideal for kitchens and bathrooms. An installation procedure that connects engineered tiles or boards to every other minus the need for adhesive on the edges or finishes. The look of plastic is a photographic image level between the assistance along with the apparent use level. Downs
You'll have to pay for contractors as well as subcontractors to perform the work. Plumbers and inspections cost extra too. The cost of the addition depends largely on the quality of the materials you want to use in the home too.
· The slope is linear and is the negative of the ratio of input prices
We all want to do our part to help save our planet. Nevertheless, most of us do not like to be told what we should purchase or what we should not consider purchasing. We have been encouraged to wean ourselves away from incandescent light bulbs, and switch to energy-saving bulbs, which we have now grown accustomed to, and in many cases have come to prefer, but what about flooring? Fortunately, flooring is also an area where you can go green, and do so in style. It is indeed possible to have great looking wood flooring in your home without contributing to worldwide deforestation.
Considering the financial statements provided in case A, if we take the operating profit divided by the days per year and average occupancy rate, the average profit per room