Question: Alice Jungemann owner of Flower Power operates a local chain

Alice Jungemann, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months:
February and May are always Flower Power’s biggest months because of Valentine’s Day and Mother’s Day, respectively.
1. Prepare a scatter plot of Alice’s volume (kilometres driven) and van operating costs.
2. Do the data appear to contain any outliers? Explain.
3. How strong of a relationship is there between kilometres driven and van operating costs?

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  • CreatedApril 30, 2015
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