Anna company sells coffee products to various customers. In recent years, profits have been declining. The CFO of the company investigated the reasons for the profit decline and performed regression analysis for sales and costs. The CFO determined that sales depend on product price, delivery speed, customer services, and marketing expenses. She also determined that total costs consist of variable costs of $25 per unit and fixed costs of $56,000. Marketing expenses have a coefficient of determination of 75% related sales. Questions 1. Define the coefficient of determination and explain what it means in this scenario. 2. Express the relationship between total costs and variable costs for Anna Company using a regression equation. Explain each element of the equation.
answer both please and explain well.
Anna company sells coffee products to various customers. In recent years, profits have been declining. The CFO of the company investigated the reasons for the profit decline and performed
Questions
1. Define the coefficient of determination and explain what it means in this scenario.
2. Express the relationship between total costs and variable costs for Anna Company using a regression equation. Explain each element of the equation.
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