Palisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data on labor costs and number of visitors to the park over the last 30 months.

Month	Labor Cost		Visitors
1	$	27,120	3,000
2	$	38,118	4,574
3	$	41,980	4,960
4	$	33,241	3,921
5	$	36,562	4,188
6	$	34,317	3,850
7	$	33,636	3,891
8	$	40,265	4,723
9	$	40,510	4,871
10	$	49,296	6,303
11	$	44,280	5,251
12	$	40,995	4,949
13	$	36,178	4,262
14	$	34,844	4,123
15	$	38,833	4,426
16	$	27,834	3,704
17	$	32,207	5,994
18	$	31,469	4,916
19	$	28,980	4,256
20	$	31,513	5,246
21	$	26,986	3,529
22	$	25,897	3,166
23	$	30,346	5,765
24	$	31,671	6,737
25	$	29,535	4,574
26	$	33,285	5,777
27	$	30,094	5,275
28	$	31,433	5,382
29	$	29,870	4,432
30	$	29,278	3,662

Required:

a). Estimate the labor costs assuming 3,800 visitors for the month using the results of a simple regression based on the 30 months of available data.

b). What percentage of the variance in the data does the R-squared value explain?

c). You learn that starting in month 16, the park started using a different, more automated system for interacting with visitors. Estimate the labor cost assuming 3,800 visitors using the results of a simple regression based on the data for months 16 through 30 only.

d). What percentage of the variance in the data does the R-squared value explain?

Answer rating: 100% (QA)

Fixed cost remains ... View the full answer