assignment- data analytics

Walter would like to find cost drivers for his landscaping jobs. He asks for your help to run some Walter would like to find cost drivers for his landscaping jobs. He asks for your help to run some Year Month Equipment HoNumber of La DL Hours Landscaping Cost 1 1 120 10 500 18,000.00 1 2 85 9 450 13,500.00 1 3 105 8 300 8,250.00 1 4 125 12 550 15,000.00 1 5 90 5 475 11,250.00 1 6 110 10 250 9,300.00 1 7 135 8 400 11,250.00 1 8 105 7 400 20,250.00 1 9 145 10 225 14,250.00 1 10 130 10 550 24,000.00 1 11 150 13 625 21,000.00 1 12 155 6 350 14,250.00 2 1 85 8 460 19,800.00 2 2 95 7 575 14,850.00 2 3 115 9 310 9,075.00 2 4 135 10 450 16,500.00 2 5 100 6 485 12,375.00 2 6 120 11 260 10,230.00 2 7 145 9 410 12,375.00 2 8 115 8 410 22,275.00 2 9 105 11 235 15,675.00 2 10 140 11 560 26,400.00 2 11 100 12 635 23,100.00 2 12 80 7 360 15,675.00 3 1 242 9 600 24,010.00 3 2 171 7 585 18,070.00 3 3 103 10 320 13,800.00 3 4 224 8 460 20,050.00 3 5 124 7 285 15,100.00 3 6 270 12 660 24,500.00 3 7 114 5 240 18,500.00 3 8 262 9 420 26,980.00 3 9 257 12 245 19,060.00 3 10 240 8 570 28,400.00 3 11 180 7 645 27,970.00 3 12 144 8 650 19,060.00

cost analyses on three key aspects of his landscaping jobs: equipment hours, number of l cost analyses on three key aspects of his landscaping jobs: equipment hours, number of l 1. You woud like to first decide which method to use to find cost drivers. Yo High Low Method Highest equipment hours 270 Lowest Equipment hours 80 Lowest cost $24,500 Highest cost $15,675 Variable cost per unit $46.45 $11,959.21 Regression analysis is the better choice for identifying multiple or single cos Number of Larger Trees as a cost driver SUMMARY OUTPUT Regression Statistics Multiple R 0.16107475 Fixed cost Helps deal with complex relationships between variables : Can handle non Robust Against Outliers: Less influenced by outliers compared to the High-L Statistical Significance: Provides statistical measures to assess the relations Handles Multiple Variables: Can analyze multiple potential cost drivers sim Better Cost Estimation: Offers a precise equation for accurate cost predictio 1. Evaluate each of the three possible cost drivers for all 3 years combine

R Square 0.02594507 Adjusted R Square -0.0027036 Standard Error 5633.24586 Observations 36 ANOVA df Regression 1 Residual 34 Total 35 Coefficients Intercept 13740.0536 X Variable 1 437.266679 DL Hours as a cost driver SUMMARY OUTPUT Regression Statistics Multiple R 0.593675006096 R Square 0.352450012863 Adjusted R Square 0.333404425006 Standard Error 4593.076005044 Observations 36 ANOVA df Regression 1 Residual 34 Total 35 Coefficients Intercept 6905.628243168 X Variable 1 24.23938278818 DL hours and Equipment hours - Multiple Regression SUMMARY OUTPUT Regression Statistics Multiple R 0.736897112884

R Square 0.543017354977 Adjusted R Square 0.515321437096 Standard Error 3916.51076537 Observations 36 ANOVA df Regression 2 Residual 33 Total 35 Coefficients Intercept 2337.121200117 X Variable 1 47.0253488266 X Variable 2 19.43897047814 Recommended Model: The recommended regression model for explaining model that includes both Direct Labor Hours and Equipment Hours as cost d value (0.5430) compared to the individual regression models for each cost d 0.3525). The adjusted R-Square value also indicates a good fit of the model.

large trees in the project, and direct labor (DL) hours. Data is available for the pa large trees in the project, and direct labor (DL) hours. Data is available for the pa ou start with High-Low method and regression methods and use equipment hour Regression Method SUMMARY OUTPUT Regression Statistics Multiple R 0.575911525778202 R Square 0.331674085524176 Adjusted R Square 0.31201744098077 Standard Error 4666.17618896739 Observations 36 ANOVA df Regression 1 Residual 34 Total 35 Coefficients Intercept 9093.34923832664 X Variable 1 59.9042037532203 st drivers and the reasons are as follows: n-linear relationships more accurately. Low method. ship’s significance. multaneously, in this case we only considered equipment hours but there are two ons. ed by using the method you selected. If more than one cost driver is statistically