# Jefferson County Airport handles several daily commuter flights and many private flights. The county budget officer has compiled the following

## Question:

Required:

1. Draw a scatter diagram of the airport costs shown above.

2. Build a spreadsheet: Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the variable- and fixed-cost components in the airport€™s cost behavior pattern.

3. Write the least-squares regression equation for the airport€™s costs.

4. Predict the airport€™s costs during a month when 1,500 flights originate at the airport.

5. Using the Excel spreadsheet prepared for requirement (2), compute the coefficient of determination (R2) for the regression equation. Briefly interpretR2.

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**Related Book For**

## Managerial Accounting Creating Value in a Dynamic Business Environment

**ISBN:** 978-0078025662

10th edition

**Authors:** Ronald Hilton, David Platt

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