Answered: Month January February March April May…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Month
January
February
March
April
May
June
Number of
Bottles
Sold
1,040
1,370
1,720
2,400
Multiple R
R Square
Adjusted R Square
Standard Error
3,400
3,620
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.
Complete this question by entering your answers in the tabs below.
Required 3 Required 4 Required 5 Required 6
Month
January
February
Operating
Cost
$ 10,740
Determine how well this regression analysis explains the data.
Note: Round your regression statistics to three decimal places and, observation and percentage answer to the nearest whole
number.
Observations
From the regression output,
number of bottles explains about
March
April
May
June
15,770
16,100
Show Transcribed Text
19,870
27,280
34,900
Total Cost
Regression Statistics
Number of
Bottles Operating
Sold
Cost
1,040
$ 10,740
1,370
15,770
1,720
16,100
2,400
19,870
3,400
27,280
3,620
34,900
% of the variability in
Garfield's total cost.
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.
J
Complete this question by entering your answers in the tabs below.
Required 3 Required 4 Required 5 Required 6
Using the regression output, create a linear cost equation (y = a +bx) for estimating Garfield's operating costs.
Note: Round your answers to 3 decimal places.
(Number of Bottles)
< Required 5
Required 6 >

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 February March April 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. Variable Cost per Unit Fixed Cost Number of Bottles Sold 1,040 1,370 1,720 2,400 3,400 3,620 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. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. Note: Do not round your intermediate calculations. Round your variable cost per unit answer to 2 decimal places and fixed cost answer to the nearest whole number. Month January February March April Operating Cost May June $ 10,740 15,770 $ Show Transcribed Text 16,100 19,870 27,280 34,900 Number of Bottles Sold 1,040 1,370 1,720 2,400 3,400 3,620 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: Intercept X Variable 1 9.36 Coefficients Required 6 Operating Cost $ 10,740 15,770 16,100 19,870 27,280 34,900 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. 3 Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Required 6 Perform a least-squares regression analysis on Garfield's data. Note: Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 3 decimal places.

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