Problem

Analyzing Mixed Costs Using Least-Squares RegressionRefer to the Camp Sunshine data presen...

Analyzing Mixed Costs Using Least-Squares Regression

Refer to the Camp Sunshine data presented in E5-9.

Required:

1. Perform a least-squares regression analysis on Camp Sunshine’s data.


2. Using the regression output, create a cost equation (Y = A + BX) for estimating Camp Sunshine’s operating costs.


3. Using the least-squares regression results, calculate the camp’s expected operating cost if 85 children attend a session.


4. Compare this estimated cost to the actual cost incurred during week 7. Explain why these numbers might differ.

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