Month Yachts Shipped Shipping Cost January 6 $ 11,650 February 4 9,100 March 3 7,825 April 8 14,200 May 2 6,550 June 7 12,925 July 5 10,375 A. Using the high-low method, create the cost formula for C&C Yachts’ shipping costs. B. Prepare a scatter graph of the shipping data using excel. Then use the least-squares regression method to come up with the cost equation that represents the line of best fit. Comment on the accuracy of this equation and how it compares to your high-low method estimation. C. What would you estimate shipping costs to be if C&C Yachts shipped 10 yachts in a single month? Use the cost formula you obtained in part A. Compare this to the cost equation you came up with in Part B.
Month Yachts Shipped Shipping Cost January 6 $ 11,650 February 4 9,100 March 3 7,825 April 8 14,200 May 2 6,550 June 7 12,925 July 5 10,375 A. Using the high-low method, create the cost formula for C&C Yachts’ shipping costs. B. Prepare a scatter graph of the shipping data using excel. Then use the least-squares regression method to come up with the cost equation that represents the line of best fit. Comment on the accuracy of this equation and how it compares to your high-low method estimation. C. What would you estimate shipping costs to be if C&C Yachts shipped 10 yachts in a single month? Use the cost formula you obtained in part A. Compare this to the cost equation you came up with in Part B.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Month | Yachts Shipped | Shipping Cost |
| January | 6 | $ 11,650 |
| February | 4 | 9,100 |
| March | 3 | 7,825 |
| April | 8 | 14,200 |
| May | 2 | 6,550 |
| June | 7 | 12,925 |
| July | 5 | 10,375 |
A. Using the high-low method, create the cost formula for C&C Yachts’ shipping costs.
B. Prepare a scatter graph of the shipping data using excel. Then use the least-squares regression method to come up with the cost equation that represents the line of best fit. Comment on the accuracy of this equation and how it compares to your high-low method estimation.
C. What would you estimate shipping costs to be if C&C Yachts shipped 10 yachts in a single month? Use the cost formula you obtained in part A. Compare this to the cost equation you came up with in Part B.
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