Bon Voyage provides charter cruises in the eastern Caribbean. Tina Louise, the owner, wants to understand how her labor costs change per month. She recognizes that the cost is neither strictly fixed nor strictly variable. She has gathered the following information and has identified two potential predictive bases, number of charters and gross receipts (attached on the given picture): Now, using the least squares method, develop a labor cost formula using a. number of charters b. gross receipts

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.57TI: What is the total effect on the economy of a government tax rebate of $1,000 to each household in...
Question
Bon Voyage provides charter cruises in the eastern Caribbean. Tina Louise, the owner, wants to understand how her labor costs change per month. She recognizes that the cost is neither strictly fixed nor strictly variable. She has gathered the following information and has identified two potential predictive bases, number of charters and gross receipts (attached on the given picture): Now, using the least squares method, develop a labor cost formula using a. number of charters b. gross receipts
Number of
Month
Labor Costs
Charters
Gross Receipts ($000)
January
$ 8,000
10
$ 12
February
9,200
14
18
March
12,000
22
26
April
14,200
28
36
May
18,500
40
60
June
28,000
62
82
July
34,000
100
120
August
30,000
90
100
September
24,000
80
96
Transcribed Image Text:Number of Month Labor Costs Charters Gross Receipts ($000) January $ 8,000 10 $ 12 February 9,200 14 18 March 12,000 22 26 April 14,200 28 36 May 18,500 40 60 June 28,000 62 82 July 34,000 100 120 August 30,000 90 100 September 24,000 80 96
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ISBN:
9780998625720
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Lynn Marecek
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OpenStax College