Required: 1. Using a computer spreadsheet program such as Excel, run a regression on these data. Based on the regression output, select the cost formula for tanning. Round the fixed cost to the nearest dollar and the variable rate to the nearest cent. 2. Using the computed formula, what is the predicted cost of tanning services for September for 1,550 appointments? Round to the nearest dollar.
Required: 1. Using a computer spreadsheet program such as Excel, run a regression on these data. Based on the regression output, select the cost formula for tanning. Round the fixed cost to the nearest dollar and the variable rate to the nearest cent. 2. Using the computed formula, what is the predicted cost of tanning services for September for 1,550 appointments? Round to the nearest dollar.
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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Method of Least Squares Sophia operates a full service day spa in a small college town. Recently, Sophia rented space next to her spa and opened a spray tanning salon. She anticipated that the costs for the spray tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows: Month January February March April May June July August Tanning Appointments 1,500 1,600 1,700 1,400 1,300 1,625 1,350 1,200 Total Cost $36,900 38,250 39,000 33,750 36,000 40,000 35,100 33,000
Transcribed Image Text:Method of Least Squares
Sophia operates a full service day spa in a small college town. Recently, Sophia rented space next to her spa and opened a spray tanning salon. She anticipated that
the costs for the spray tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service
over the past 8 months are as follows:
Month
January
February
March
April
May
June
July
August
Tanning
Appointments
1,500
1,600
1,700
1,400
1,300
1,625
1,350
1,200
Total Cost
$36,900
38,250
39,000
33,750
36,000
40,000
35,100
33,000
Transcribed Image Text:Required:
1. Using a computer spreadsheet program such as Excel, run a regression on these data. Based on the regression output, select the cost formula for tanning. Round
the fixed cost to the nearest dollar and the variable rate to the nearest cent.
2. Using the computed formula, what is the predicted cost of tanning services for September for 1,550 appointments? Round to the nearest dollar.
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