Required information [The following information applies to the questions displayed below.] Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Total Utility Cost Month January February March April May June Total Hours of Operation 550 $ 1,620 600 1,700 700 1,900 500 1,600 450 1,350 400 1,300 raw a scatter diagram of the store's utility costs.

Required information [The following information applies to the questions displayed below.] Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Total Utility Cost Month January February March April May June Total Hours of Operation 550 $ 1,620 600 1,700 700 1,900 500 1,600 450 1,350 400 1,300 raw a scatter diagram of the store's utility costs.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter7: Linear Regression

Section: Chapter Questions

Problem 13P: Johnson Filtration. Inc., provides maintenance service for water filtration systems throughout...

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Johnson Filtration. Inc., provides maintenance service for water filtration systems throughout southern Florida. Customers contact Johnson with requests for maintenance service on their water filtration systems. To estimate the service time and the service cost. Johnson’s managers want to predict the repair time necessary for each maintenance request. Hence, repair time in hours is the dependent variable. Repair time is believed to be related to three factors: the number of months since the last maintenance service, the type of repair problem (mechanical or electrical), and the repairperson who performs the repair (Donna Newton or Bob Jones). Data for a sample of 10 service calls are reported in the following table: Develop the simple linear regression equation to predict repair time given the number of months since the last maintenance service, and use the results to test the hypothesis that no relationship exists between repair time and the number of months since the last maintenance service at the 0.05 level of significance. What is the interpretation of this relationship? What does the coefficient of determination tell you about this model? Using the simple linear regression model developed in part (a), calculate the predicted repair time and residual for each of the 10 repairs in the data. Sort the data in ascending order by value of the residual. Do you see any pattern in the residuals for the two types of repair? Do you see any pattern in the residuals for the two repairpersons? Do these results suggest any potential modifications to your simple linear regression model? Now create a scatter chart with months since last service on the x-axis and repair time in hours on the y-axis for which the points representing electrical and mechanical repairs are shown in different shapes and/or colors. Create a similar scatter chart of months since last service and repair time in hours for which the points representing repairs by Bob Jones and Donna Newton are shown in different shapes and/or colors. Do these charts and the results of your residual analysis suggest the same potential modifications to your simple linear regression model? Create a new dummy variable that is equal to zero if the type of repair is mechanical and one if the type of repair is electrical. Develop the multiple regression equation to predict repair time, given the number of months since the last maintenance service and the type of repair. What are the interpretations of the estimated regression parameters? What does the coefficient of determination tell you about this model? Create a new dummy variable that is equal to zero if the repairperson is Bob Jones and one if the repairperson is Donna Newton. Develop the multiple regression equation to predict repair time, given the number of months since the last maintenance service and the repairperson. What are the interpretations of the estimated regression parameters? What does the coefficient of determination tell you about this model? Develop the multiple regression equation to predict repair time, given the number of months since the last maintenance service, the type of repair, and the repairperson. What are the interpretations of the estimated regression parameters? What does the coefficient of determination tell you about this model? Which of these models would you use? Why?
Tucker Pup’s Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a.Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
Tucker Pup's Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a. Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
Kim Epson operates a full-service car wash, which operates from 8AM to 8 PM seven days a week. The car wash has two stations an automatic washing and drying station that can handle 30 cars per hour and an interior cleaning station that can handle 210 cars per day Based on a recent year-end Neview of operations, Kim estimates that future demand for the interior cleaning station for the seven days of the week, expressed in the average number of cars per day, would be as follows Day Cars Kim Mon 160 Tues 180 Wed 150 Thurs 140 Fri 270 Sat 250 fly instaling additional equipment (at a cost of $30,000) Kim can increase the capacity of the interior cleaning to 300 cars per day Each car wash generates a protax contribution of $1.00 Should Kim install the additional equipment if she expects a pretax payback penod of three years or less? install the additional equipment because the payback period is Sun 250 years (Enter your response rounded to be decimal places)
How can resolve this problem Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $500 and the variable cost per cup of coffee served is $0.61. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 1,700 1,800 1,900 Fixed cost Variable cost Total cost $0 $0 $0 Average cost per cup of coffee served
The Cheyenne Hotel in Big Sky. Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for onie day. The hotel's business is highly seasonal, with peaks occunting during the ski season and in the summer. Honth January February March Aoril May June July August Septenber October Novenber Decenber Occupancy-Davs 4. 260 3.650 3. 160 2.150 2.260 1.450 3. 180 3.750 2.220 3.580 1,690 2.750 Electrical Conts $ 15.002 $ 14,112 $ 13.272 $9.000 $9.432 $6.00 S 19.356 $ 14.532 $9,324 $6.636 $7. 000 $ 11.580 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) es Variable cost of electricity Fixed cost of electricity per occupancy day per…
Louis Petit, a manager of Doggone Gorgeous, Inc., was reviewing the water bills of a dog daycare and spa. He determined that its highest and lowest bills of $3,800and $2,000 were incurred in the months of May and November, respectively. If 600 dogs were washed in May and 100 dogs were washed in November, what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) A.$ 2 comma 000 $2,000 B.$ 1 comma 800 $1,800 C.$ 1 comma 640 $1,640 D.$ 3 comma 800
A facility has current liabilities of $448,923 and current assets of $562,244. What is the facility’s current ratio? A facility has current liabilities of $496,277 and current net assets of $199,896. What is the facility’s current ratio? Your facility has 195 residents and it requires 14 labor minutes per meal. How many labor hours are required per week? Last year’s food costs for your 130-bed facility were $172,430. Your facility had an average occupancy rate of 91% last year. What was the food cost per patient day (PPD)? If your assisted living facility needs to purchase a piece of equipment 5 years from today, and you can invest 6% compound interest, how much would your facility have to invest today to have approximately $13,382 in 5 years?
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $500 and the variable cost per cup of coffee served is $0.49. Required: Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases?
S Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,300 and the variable cost per cup of coffee served is $0.79. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. Note: Round the "Average cost per cup of coffee served" to 3 decimal places. Fixed cost Variable cost Total cost Average cost per cup of coffee served $ Cups of Coffee Served in a Week 1,100 1,000 0 $ Required 1 0 $ 1,200 Required 2 > 0
At the beginning of the new year, Mumford Regional's chief competitor is planning to open a brand-new Women's and Children's Hospital nearby. As a result, Mumford expects all its supply needs to decrease by 20%. Currently it's contracted vendor is Vendor C, using the information in Exhibit 10-14, determine whether if Mumford should change its contracted vendor to Vendor A or Vendor B. Enter total expense for using Vendor A. Enter total expense for using Vendor B. Enter total expense for using Vendor C. Which vendor should Mumford select? Enter Vendor A, Vendor B or Vendor C as your answer. Exhibit 10-14 Alternative Vendor Options for Mumford Regional Volume of Vendor A Vendor B Vendor C Supplies Unit Total Unit Total Unit Total Supply Needed Price Cost Price Cost Price Cost Item 1 88,000 $ 2.35 $ 206,800 $ 2.42 $ 212,960 $ 2.28 $ 200,640…
Elyssa’s Elegant Eveningwear (EEE) needs to ship fi nishedgoods from its manufacturing facility to its distributionwarehouse. Annual demand for EEE is 2400 gowns. EEE canship the gowns via regular parcel service (3 days transit time),premium parcel service (1 day transit time), or via public carrier(7 days transit time). Calculate the average annual transportationinventory for each alternative.