Here well use least squares (inear regression to develop the total cost equation for a catering Operation This equation will be used along with revenue information to find the caterer's break even point. There are some Excel notes on the next page that may be heloful. Katle's Catering Co provides catering services for private dinner parties. To date, Katie has catered 17 dinner parties. The number of guests and total cost of catering each party are shown in the table below. Katie charges clients $39.99 per dinner party guest 1. Make a xatter diagram of the data (Total Cost vs. Party Sizel Total Cost Party Size I guests) 1.463 1389 2. Find the least squares regression equation that gives Total Costas a linear function of the Party See The least squares regression equation here is: 120 143 1343 1,760 2653 3. 3 Accurately plot the Total Cast (regression) line on your scatterplot either by hand or by using the Excel's Add Trendline tool 3) Likewise, plot tha Total Revenue line other by hand or via Excel 1.649 3.619 2876 1426 4. Based on the least squares regression equation, what is Katie's: 1a) Fixed cost of catering a dinner party? 1.649 2.126 4b) Variable cost of serving dinner to a guest? 2259 5. Is the linear relationship between Total Cast and Party Size weak, moderate ar, strong? There is a SEROR.LORacalationship between Ital.cast and Parv a 19260.5 6. Assuming that your regression equation above accurately reflects Katie's total costs, calculate her: 6 BEP. (break even point in af guests): 66) BEP, break-even point in dollars) 7. Suppose Katie agrees to cater a dinner party for 90 guests. What can Katie expect for the 7a Total cost of catering this party? 76) Total pels from catering this party? Cancel Print