Please answer requirements 3b and 4.

Please answer requirements 3b and 4.

Here is the answer for Req 1 and 2.

Req. 1

Cost equation using square feet as driver

House	Square Feet	External Opening	Cost
1	2520	13	2830
2	3010	15	3742
3	2800	12	3100
4	2860	12	3160
5	4620	19	4720
6	2700	13	3225
7	2600	11	2920
8	2550	11	2836
9	2600	10	3235
10	3700	16	4112
11	2650	13	3210
12	3550	16	3965
Max	4620		4720
Min	2520		2830

Variable cost per units = ( 4720 - 2830 ) / ( 4620 2520 ) = 0.90

Calculation of Total fixed Cost Total Fixed Cost = Total Cost - Total Variable Cost Total Fixed Cost = $4720- $0.9 * 4620 Total Fixed Cost = $562

Thus, the first equation Total Cost = Total Fixed Cost + Variable Cost per units * square feet Total Cost = $562 + $0.9 square feet

For determining the cost of painting a 3300 square feet Total Cost = 562 + 0.9 Square feet Total Cost = 562 + 0.9 * 3300 = $ 3532

For determining the cost of painting a 2400 square feet Total Cost = 562 + 0.9 Square feet Total Cost = 562 + 0.9 * 2400 = $ 2722

Req. 2

Calculation cost equation using the external opening as driver

House	Square Feet	External Opening	Cost
1	2520	13	2830
2	3010	15	3742
3	2800	12	3100
4	2860	12	3160
5	4620	19	4720
6	2700	13	3225
7	2600	11	2920
8	2550	11	2836
9	2600	10	3235
10	3700	16	4112
11	2650	13	3210
12	3550	16	3965
Max		19	4720
Min		10	3235

Variable cost per units = ( 4720 - 3235 ) / ( 19 - 10 ) = 165

Calculation of Total fixed Cost Total Fixed Cost = Total Cost - Total Variable Cost Total Fixed Cost = $4720- $ 165 * 19 Total Fixed Cost = $1585

Thus, the first equation Total Cost = Total Fixed

Cost + Variable Cost per units * square feet Total Cost = $1585 + $ 165 external openings

For determining the cost of painting with 14 external openings. Total Cost = 1585 + 165 external openings Total Cost = 1585 + 165 * 14 = $ 3895

Required information [The following information applies to the questions displayed below.] The Mac Davis Company specializes in the purchase, renovation, and resale of older homes. Mac employs several carpenters and painters to do the work for him. It is essential for him to have accurate cost estimates so he can determine total renovation costs before he purchases a piece of property. If estimated renovation costs plus the purchase price of a house are higher than the house's estimated resale value, it is not a worthwhile investment. Mac has been using the home's interior square feet for his exterior paint cost estimations. Recently he decided to include the number of external openingsthe total number of doors and windows in a house-as a cost driver. Their cost is significant because they require time-consuming preparatory work and careful brushwork. The rest of the house usually is painted either by rollers or spray guns, which are relatively efficient ways to apply paint to a large area. Mac has kept careful records of these exterior painting costs on his last 12 jobs: House 1 2 3 4 5 6 7 8 9 10 11 12 Square Feet 2,500 3,010 2,800 2,850 4,600 2,700 2,600 2,550 2,600 3,700 2,660 3,550 External Openings 13 15 12 12 19 13 11 11 10 16 13 16 Costs $ 2,810 3,742 3,100 3,150 4,700 3,225 2,920 2,836 3,242 4,112 3,220 3,965 Required: 3b. From reviewing the graph you created, which of the variables is a good cost driver? 4. Create a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of this model. Complete this question by entering your answers in the tabs below. Reg 3B Reg 4 From reviewing the graph you created, which of the variables is a good cost driver? Good cost driver square feet openings both Req 3B Req 4 Create a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of this model. (Choose values closest to your computations from the dropdowns below.) Overall, the regression is with an R-squared of at which is a relatia mall narantone and standard error of the estimate (SE), of the mean of the dependent variable, (1%) (5%) (16%) Req 3B Req 4 Create a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of this model. (Choose values closest to your computations from the dropdowns below.) Overall, the regression is with an R-squared of at which is a relatively small percentage and standard error of the estimate (SE), of the mean of the dependent variable, square feet openings both Req 3B Req 4 Create a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of this model. (Choose values closest to your computations from the dropdowns below.) Overall, the regression is with an R-squared of at which is a relatia mall narantone and standard error of the estimate (SE), of the mean of the dependent variable, (1%) (5%) (16%) Req 3B Req 4 Create a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of this model. (Choose values closest to your computations from the dropdowns below.) Overall, the regression is with an R-squared of at which is a relatively small percentage and standard error of the estimate (SE), of the mean of the dependent variable,