Question: Same Day Delivery wants to determine the cost behavior pattern

Same Day Delivery wants to determine the cost behavior pattern of maintenance costs for its delivery vehicles. The company has decided to use linear regression to examine the costs. The prior year’s data regarding maintenance hours and costs are as follows:


Required
A. Perform a regression analysis on the above data. What maintenance costs should be budgeted for a month in which 420 maintenance hours will be worked?
B. What is the percentage of the total variance that can be explained by your analysis?
C. Use the high/low method to estimate a cost formula for Same Day. How similar is your high/low solution to the regressionsolution?
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  • CreatedMarch 11, 2015
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