Avant Equipment Australia is a family business manufacturing replacement rotary sweeper brooms for the large sweeper...
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Avant Equipment Australia is a family business manufacturing replacement rotary sweeper brooms for the large sweeper trucks that clear leaves and rubbish from the city streets. The business is, to some degree, seasonal, with the largest demand during and just preceding the autumn and winter months. Since there are so many different kinds of sweeper brooms used by its customers, Avant Equipment makes all of its brooms to order. The company has been analyszing its overhead accounts to determine fixed and variable components for planning purposes. Below are data for the company's janitorial costs over the last two years. Janitorial Janitorial Number of units work days produced 1,150 Year Month January costs $ 3,840 $ 3,648 $ 4,128 $ 3,456 $ 4,320 $ 4,032 $ 2,784 $ 2,688 $ 3,840 $ 3,359 $ 2,584 $ 2,965 $ 3,764 $ 3,641 $ 3,899 $ 4,226 $ 4,695 $ 4,116 $ 3,112 $ 3,287 $ 3,956 $ 3,265 $ 2,897 $ 2,666 2018 21 February March 1,090 1,220 20 21 April May 19 950 21 1,250 June 22 1,190 July 17 770 August September October 16 710 21 1,080 20 990 November 16 710 December 17 680 2019 January February 20 1,100 1,025 1,220 1,310 1,390 1,060 20 March 21 April May 23 23 June 21 July August September October 17 850 19 790 19 990 18 840 November 17 770 750 1,010 950 December 16 2020 January February March April May June 17 16 20 1,210 1,350 1,280 1,120 14 21 22 The number of janitorial work days varies from month to month due to the number of weekdays, holidays, days of vacation and sick leave taken in the month. The number of units produced in a month varies depending on demand and the number of workdays in a month. Avant Equipment is in the process of budgeting monthly janitorial costs for 2020. The assumption is that in some way janitorial costs is related to either janitorial work days or number of units produced. REQUIRED: А. Develop a regression that Avant Equipment should use (ie y = a + bx) and explain why it is the appropriate regression to use, using the appropriate statistical tools. В. Using the regression you developed in (A), predict the janitorial cost for the 6 months of 2020 (round your answer to whole numbers). Avant Equipment Australia is a family business manufacturing replacement rotary sweeper brooms for the large sweeper trucks that clear leaves and rubbish from the city streets. The business is, to some degree, seasonal, with the largest demand during and just preceding the autumn and winter months. Since there are so many different kinds of sweeper brooms used by its customers, Avant Equipment makes all of its brooms to order. The company has been analyszing its overhead accounts to determine fixed and variable components for planning purposes. Below are data for the company's janitorial costs over the last two years. Janitorial Janitorial Number of units work days produced 1,150 Year Month January costs $ 3,840 $ 3,648 $ 4,128 $ 3,456 $ 4,320 $ 4,032 $ 2,784 $ 2,688 $ 3,840 $ 3,359 $ 2,584 $ 2,965 $ 3,764 $ 3,641 $ 3,899 $ 4,226 $ 4,695 $ 4,116 $ 3,112 $ 3,287 $ 3,956 $ 3,265 $ 2,897 $ 2,666 2018 21 February March 1,090 1,220 20 21 April May 19 950 21 1,250 June 22 1,190 July 17 770 August September October 16 710 21 1,080 20 990 November 16 710 December 17 680 2019 January February 20 1,100 1,025 1,220 1,310 1,390 1,060 20 March 21 April May 23 23 June 21 July August September October 17 850 19 790 19 990 18 840 November 17 770 750 1,010 950 December 16 2020 January February March April May June 17 16 20 1,210 1,350 1,280 1,120 14 21 22 The number of janitorial work days varies from month to month due to the number of weekdays, holidays, days of vacation and sick leave taken in the month. The number of units produced in a month varies depending on demand and the number of workdays in a month. Avant Equipment is in the process of budgeting monthly janitorial costs for 2020. The assumption is that in some way janitorial costs is related to either janitorial work days or number of units produced. REQUIRED: А. Develop a regression that Avant Equipment should use (ie y = a + bx) and explain why it is the appropriate regression to use, using the appropriate statistical tools. В. Using the regression you developed in (A), predict the janitorial cost for the 6 months of 2020 (round your answer to whole numbers).
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