Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Month January Operating Cost Number of Bottles Sold 1,020 $ 10,710 February 1,450 15,660 March 1,740 15,900 April 2,350 19,890 3,360 27,490 3,800 34,800 May June Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (y= a + bx) for estimating Garfield's operating costs.
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Month January Operating Cost Number of Bottles Sold 1,020 $ 10,710 February 1,450 15,660 March 1,740 15,900 April 2,350 19,890 3,360 27,490 3,800 34,800 May June Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (y= a + bx) for estimating Garfield's operating costs.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a
spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood
dogs out of their yards. Garfield's operating information for the first six months of the year follows:
Month
January
Operating
Cost
Number of
Bottles Sold
1,020
$ 10,710
February
1,450
15,660
March
1,740
15,900
April
2,350
19,890
3,360
27,490
3,800
34,800
May
June
Required:
3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle.
4. Perform a least-squares regression analysis on Garfield's data.
5. Determine how well this regression analysis explains the data.
6. Using the regression output, create a linear cost equation (y-a + bx) for estimating Garfield's operating costs.
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VIEWStep 5: Develop the cost equation using the regression output
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