Question

Suppose we need to predict the cost of maintenance for Brush Prairie High School for the upcoming school year. From the school district records we gather weekly data about costs and volumes for two potential cost drivers: labor hours used in the maintenance department and number of enrolled students.


REQUIRED
A. Identify and explain two potential cost drivers for total maintenance cost, in addition to number of students and maintenance hours worked.
B. Create a scatter plot, first for maintenance cost against hours worked and then maintenance cost against students.
C. Would you eliminate either cost driver based on the plots? Explain.
D. Perform regression analysis using each cost driver. Use your judgment to determine the most appropriate cost driver and write out the cost function for maintenance cost.
E. Can we know for certain that the cost driver chosen in part (D) is the best cost driver? Why or whynot?


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  • CreatedJanuary 26, 2015
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