There are two parts to this problem. Use Excel to perform the following: a. Generate a linear regression for each cost driver. Include a line fit plot. b. Identify the best cost driver for delivery costs. Explain your choice.
There are two parts to this problem. Use Excel to perform the following: a. Generate a linear regression for each cost driver. Include a line fit plot. b. Identify the best cost driver for delivery costs. Explain your choice.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Data of activities and weekly delivery costs | ||||
Date | Miles Driven | Packages Delivered | Delivery Stops | Delivery Cost |
1/1 | 2,656 | 15,700 | 12,175 | $ 5,479 |
1/8 | 2,085 | 12,756 | 9,019 | 4,608 |
1/15 | 2,719 | 17,555 | 12,358 | 5,428 |
1/22 | 2,998 | 18,547 | 12,507 | 5,826 |
1/29 | 3,655 | 13,030 | 12,476 | 4,846 |
2/5 | 2,650 | 18,355 | 9,910 | 4,250 |
2/12 | 2,829 | 16,719 | 11,906 | 5,073 |
2/19 | 2,056 | 17,751 | 10,833 | 4,668 |
2/26 | 2,890 | 19,379 | 9,883 | 4,841 |
3/5 | 2,341 | 15,542 | 10,184 | 4,363 |
3/12 | 2,269 | 12,546 | 9,724 | 4,859 |
3/19 | 2,632 | 16,346 | 10,735 | 4,689 |
3/26 | 2,588 | 17,832 | 11,579 | 5,332 |
4/2 | 3,254 | 17,990 | 12,681 | 5,714 |
4/9 | 2,956 | 19,877 | 12,940 | 5,914 |
4/16 | 2,368 | 15,917 | 10,495 | 4,615 |
4/23 | 2,879 | 12,970 | 12,021 | 5,115 |
4/30 | 2,142 | 17,467 | 10,756 | 4,414 |
5/7 | 2,671 | 13,410 | 11,515 | 5,316 |
5/14 | 3,165 | 15,245 | 11,694 | 5,356 |
5/21 | 2,742 | 19,088 | 12,610 | 5,888 |
5/28 | 2,383 | 16,454 | 9,983 | 4,727 |
6/4 | 2,111 | 13,400 | 10,659 | 4,756 |
6/11 | 2,358 | 16,191 | 11,723 | 4,911 |
6/18 | 2,563 | 12,693 | 9,177 | 4,363 |
6/25 | 2,472 | 16,145 | 10,213 | 4,891 |
7/2 | 2,345 | 12,243 | 9,025 | 4,400 |
7/9 | 2,612 | 15,280 | 11,086 | 5,010 |
7/16 | 2,655 | 15,243 | 12,161 | 5,482 |
7/23 | 2,625 | 14,700 | 10,140 | 4,556 |
7/30 | 2,345 | 18,145 | 12,764 | 5,683 |
8/6 | 2,659 | 16,090 | 12,445 | 5,640 |
8/13 | 2,318 | 14,770 | 12,159 | 4,776 |
8/20 | 3,456 | 18,878 | 12,097 | 4,828 |
8/27 | 2,987 | 18,719 | 12,134 | 5,730 |
9/3 | 2,436 | 15,452 | 10,727 | 4,854 |
9/10 | 2,261 | 12,565 | 9,823 | 4,500 |
9/17 | 2,492 | 16,432 | 12,038 | 5,422 |
9/24 | 2,659 | 16,365 | 12,560 | 5,476 |
10/1 | 1,951 | 17,093 | 12,394 | 4,837 |
10/8 | 2,445 | 16,296 | 11,030 | 4,925 |
10/15 | 2,922 | 16,583 | 11,892 | 5,560 |
10/22 | 2,890 | 18,556 | 11,446 | 5,341 |
10/29 | 2,189 | 16,624 | 12,241 | 4,904 |
11/5 | 2,520 | 18,357 | 11,587 | 4,710 |
11/12 | 2,377 | 14,729 | 10,769 | 5,222 |
11/19 | 2,143 | 15,341 | 10,111 | 4,380 |
11/26 | 3,145 | 15,607 | 11,526 | 4,945 |
12/3 | 2,872 | 18,360 | 9,734 | 4,950 |
12/10 | 2,146 | 16,940 | 11,257 | 4,568 |
12/17 | 2,960 | 15,688 | 10,434 | 5,102 |
12/24 | 2,185 | 18,589 | 11,295 | 4,532 |
12/31 | 2,248 | 18,707 | 9,888 | 4,749 |
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