Question

Required information Camp Rainbow offers overnight summer camp programs for children ages 10-14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and girls attend during the even-numbered weeks. While at the camp, participants make crafts, participate in various sports, help care for the camp's resident animals, have cookouts and hayrides, and help assemble toys for local underprivileged children. The camp provides all food as well as materials for all craft classes and the toys to be assembled. One cabin can accommodate up to 10 children, and one camp counselor is assigned to each cabin. Three camp managers are on-site regardless of the number of campers enrolled. Following is the cost information for Camp Rainbow's operations last summer: Week 00 JONAWN Number of Campers 196 172 188 116 96 152 148 98 Cost to Run Camp $13, 600 14, 250 13, 110 9, 340 9,000 12, 230 10, 260 8, 180 Required: 1. Perform a least-squares regression analysis on Camp Rainbow's data. 2. Using the regression output, create a cost equation (y= a + bx) for estimating Camp Rainbow's operating costs. 3. Using the least-squares regression results, calculate the camp's expected operating cost if 148 children attend a session.

Answer 1

1)
SUMMARY OUTPUT
Regression Statistics
Multiple R	0.93260592
R Square	0.86975381
Adjusted R Square	0.84804611
Standard Error	908.928678
Observations	8
ANOVA
	df	SS	MS	F	Significance F
Regression	1	33101079.4	33101079	40.0666	0.000727
Residual	6	4956908.05	826151.3
Total	7	38057987.5
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%
Intercept = Fixed Cost	3133.41	1321.35823	2.371356	0.055418	-99.8362	6366.658	-99.8362
X Variable 1 = Variable cost per unit	55.66	8.79372802	6.329819	0.000727	34.14523	77.18018	34.14523
2)
Y = $3133.41 + $55.66 Number of Campers
3)
Y = $3133.41 + $55.66  x 148	$11,371.49