Anne Colton has a renovation business which uses painters to do custom paint jobs for house...

 

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Anne Colton has a renovation business which uses painters to do custom paint jobs for house exteriors. She is trying to get a better idea of her cost structure to be able to bid on contracts as there has been new competition entering her neighbourhood from the downtown area. She has traditionally used the square footage of the houses she's worked on; but noticed that the amount of time taken also differed on the last 2 projects which had a lot of windows and doors, which requires a lot more preparation work. Information for her last 12 jobs are as follows. House Square Footage Windows & Doors Cost 1 2,600 13 $3,335 2 3,010 15 3,742 3 2,800 12 3,100 4 2,850 12 3,150 4,600 19 4,700| 2,700 13 3,225 7 2,375 11 2,920 8 2,450 11 2,836 9 2,600 10 2,945 10 3,700 16 4,112 11 2,650 13 3,210 12 3,550 16 3,965 Required: 1) How much would Anne charge for a house with 3,300 square feet and 14 openings, based on: A. high-low method, based on square footage. B. high-low method, based on number of windows. C. regression analysis, based on square footage. D. regression analysis, based on number of windows. 2) Which method do you recommend? Explain your answer. 3) What other considerations should Anne take into account? Explain. 5. Anne Colton has a renovation business which uses painters to do custom paint jobs for house exteriors. She is trying to get a better idea of her cost structure to be able to bid on contracts as there has been new competition entering her neighbourhood from the downtown area. She has traditionally used the square footage of the houses she's worked on; but noticed that the amount of time taken also differed on the last 2 projects which had a lot of windows and doors, which requires a lot more preparation work. Information for her last 12 jobs are as follows. House Square Footage Windows & Doors Cost 1 2,600 13 $3,335 2 3,010 15 3,742 3 2,800 12 3,100 4 2,850 12 3,150 4,600 19 4,700| 2,700 13 3,225 7 2,375 11 2,920 8 2,450 11 2,836 9 2,600 10 2,945 10 3,700 16 4,112 11 2,650 13 3,210 12 3,550 16 3,965 Required: 1) How much would Anne charge for a house with 3,300 square feet and 14 openings, based on: A. high-low method, based on square footage. B. high-low method, based on number of windows. C. regression analysis, based on square footage. D. regression analysis, based on number of windows. 2) Which method do you recommend? Explain your answer. 3) What other considerations should Anne take into account? Explain. 5.

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C regression alanysis based on square foot... View the full answer