Create a scatterplot (Learning Objective 3) Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops . Each shop has its own delivery van. Instead of charging a flat delivery fee, Leigh wants to set the delivery fee based on the distance driven to deliver the flowers . Leigh wants to separate the fixed and variable portions of her van operating costs so that she has a better idea of how delivery dis- tance affects these costs. She has the following data from the past seven months: Month January ............................ February ......................... . March ............................. . April ................................ . May ......... ............. ....... ..... June ................................ . July ................................. . Requirements Miles Driven 15,500 17,400 15,400 16,300 16,500 15,200 14,400 Van Operating Costs $5,390 $5,280 $4,960 $5,340 $5,450 $5,230 $4,680 1. Prepare a scatterplot of Broadway Floral's volume (miles driven) and van operating costs. 2. Does the data appear to contain any outliers? Explain. 3. How strong a relationship is there between miles driven and van operating costs? E6-26A Continuation of E6-25A: High-low method (Learning Objective 4) Refer to Broadway Floral's data in E6-25A. Use the high-low method to determine Broad- way Floral's cost equation for van operating costs. Use your results to predict van operat- ing costs at a volume of 16,500 miles
Create a scatterplot (Learning Objective 3)
Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops . Each shop
has its own delivery van. Instead of charging a flat delivery fee, Leigh wants to set the delivery fee based on the distance driven to deliver the flowers . Leigh wants to separate the fixed and variable portions of her van operating costs so that she has a better idea of how delivery dis- tance affects these costs. She has the following data from the past seven months:
Month
January ............................ February ......................... . March ............................. . April ................................ . May ......... ............. ....... ..... June ................................ . July ................................. .
Requirements
Miles Driven
15,500 17,400 15,400 16,300 16,500 15,200 14,400
Van Operating Costs
$5,390 $5,280 $4,960 $5,340 $5,450 $5,230 $4,680
1. Prepare a scatterplot of Broadway Floral's volume (miles driven) and van operating costs. 2. Does the data appear to contain any outliers? Explain.
3. How strong a relationship is there between miles driven and van operating costs?
E6-26A Continuation of E6-25A: High-low method (Learning Objective 4)
Refer to Broadway Floral's data in E6-25A. Use the high-low method to determine Broad- way Floral's cost equation for van operating costs. Use your results to predict van operat- ing costs at a volume of 16,500 miles .
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
