Palisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data on labor costs and number of visitors to the park over the last 30 months. Month Labor Cost visitors 1 $26,520 $37,274 $41,052 $32,506 $35,753 2,400 2 3,659 3,968 3,137 3,350 3,080 4 $33,558 $32,891 3,113 3,778 3,897 5,042 4,201 3,959 3,410 3,298 3,541 2,963 4,795 3,933 3,405 4,196 $39,374 $39,614 $48,205 $43,300 $40,088 $35,378 10 11 12 13 $34,073 $37,974 $27,218 $31,495 $30,773 $28,338 $30,816 14 15 16 17 18 19 20 $26,389 $25,324 $29,675 $30,970 21 2,823 2,533 22 23 4,612 5,389 24 $28,882 $32,549 $29,428 $30,738 $29,209 $28,630 3,659 4,622 4,220 4,306 25 26 27 28 29 3,545 2,930 30 Required: a. Estimate the labor costs assuming 3,200 visitors for the month using the results of a simple regression based on the 30 months of available data. b. What percentage of the variance in the data does the R-squared value explain? c. You learn that starting in month 16, the park started using a different, more automated system for interacting with visitors. Estimate the labor cost assuming 3,200 visitors using the results of a simple regression based on the data for months 16 through 30 only. d. What percentage of the variance in the data does the R-squared value explain?
Palisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data on labor costs and number of visitors to the park over the last 30 months. Month Labor Cost visitors 1 $26,520 $37,274 $41,052 $32,506 $35,753 2,400 2 3,659 3,968 3,137 3,350 3,080 4 $33,558 $32,891 3,113 3,778 3,897 5,042 4,201 3,959 3,410 3,298 3,541 2,963 4,795 3,933 3,405 4,196 $39,374 $39,614 $48,205 $43,300 $40,088 $35,378 10 11 12 13 $34,073 $37,974 $27,218 $31,495 $30,773 $28,338 $30,816 14 15 16 17 18 19 20 $26,389 $25,324 $29,675 $30,970 21 2,823 2,533 22 23 4,612 5,389 24 $28,882 $32,549 $29,428 $30,738 $29,209 $28,630 3,659 4,622 4,220 4,306 25 26 27 28 29 3,545 2,930 30 Required: a. Estimate the labor costs assuming 3,200 visitors for the month using the results of a simple regression based on the 30 months of available data. b. What percentage of the variance in the data does the R-squared value explain? c. You learn that starting in month 16, the park started using a different, more automated system for interacting with visitors. Estimate the labor cost assuming 3,200 visitors using the results of a simple regression based on the data for months 16 through 30 only. d. What percentage of the variance in the data does the R-squared value explain?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 17P
Related questions
Question
I need help with this cost accounting problem.
Transcribed Image Text:Palisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both
educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data
on labor costs and number of visitors to the park over the last 30 months.
Month
Labor Cost
Visitors
$26,520
$37,274
$41,052
$32,506
$35,753
$33,558
2,400
3,659
3,968
3,137
3,350
3,080
1
$32,891
$39,374
$39,614
$48,205
$43,300
$40,088
3,113
3,778
3,897
5,042
4, 201
3,959
10
11
12
$35,378
$34,073
$37,974
$27,218
$31,495
$30,773
$28,338
$30,816
$26,389
13
3,410
3,298
3,541
2,963
14
15
16
4,795
3,933
3,405
4,196
2,823
2,533
4,612
17
18
19
20
21
$25,324
$29,675
22
23
24
$30,970
$28, 882
$32,549
$29,428
$30,738
$29,209
$28,630
5,389
3,659
4,622
4,220
25
26
27
4,306
3,545
28
29
30
2,930
Required:
a. Estimate the labor costs assuming 3,200 visitors for the month using the results of a simple regression based on the 30 months of
available data.
b. What percentage of the variance in the data does the R-squared value explain?
c. You learn that starting in month 16, the park started using a different, more automated system for interacting with visitors. Estimate
the labor cost assuming 3,200 visitors using the results of a simple regression based on the data for months 16 through 30 only.
d. What percentage of the variance in the data does the R-squared value explain?
Complete this question by entering your answers in the tabs below.
Req A and B
Req C and D
a. Estimate the labor costs assuming 3,200 visitors for the month using the results of a simple regression based on the 30 months of available
data. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. What percentage of the variance in the data does the R-squared value explain?
a. Labor cost
b. The R-squared value suggests that the number of visitors only explains
< Reg A and B
Req C and D >
Transcribed Image Text:Palisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both
educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data
on labor costs and number of visitors to the park over the last 30 months.
Visitors
2,400
3,659
Month
Labor Cost
1
$26,520
$37,274
$41,052
$32,506
$35,753
$33,558
$32,891
3,968
3,137
3,350
3,080
3,113
3,778
3,897
5,042
4,201
3
$39,374
$39,614
$48,205
10
11
$43,300
$40,088
$35,378
3,959
3,410
3,298
3,541
12
13
$34,073
$37,974
14
15
$27,218
$31,495
$30,773
16
2,963
4,795
3,933
17
18
3,405
4,196
19
$28,338
$30,816
$26,389
20
21
$25,324
$29,675
$30,970
$28,882
2,823
2,533
4,612
5,389
22
23
24
25
$32,549
$29,428
$30,738
$29,209
3,659
4,622
4,220
4,306
26
27
28
3,545
2,930
29
30
$28,630
Required:
a. Estimate the labor costs assuming 3,200 visitors for the month using the results of a simple regression based on the 30 months of
available data.
b. What percentage of the variance in the data does the R-squared value explain?
c. You learn that starting in month 16, the park started using a different, more automated system for interacting with visitors. Estimate
the labor cost assuming 3,200 visitors using the results of a simple regression based on the data for months 16 through 30 only.
d. What percentage of the variance in the data does the R-squared value explain?
Complete this question by entering your answers in the tabs below.
Req A and B
Req C and D
c. You learn that starting in month 16, the park started using a different, more automated system for interacting with visitors. Estimate the
labor cost assuming 3,200 visitors using the results of a simple regression based on the data for months 16 through 30 only. (Do not round
intermediate calculations and round your final answer to 2 decimal places.)
d. What percentage of the variance in the data does the R-squared value explain?
Show lessa
c. Labor cost
d. The R-squared value suggests that the number of visitors only explains
< Req A and B
Req C and D
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Step 1: Identify dependent and independent variable
VIEWStep 2: Deriving regression equation
VIEWStep 3: (a) estimate labor cost assuming 3200 visitors
VIEWStep 4: (b) What percentage of the variance
VIEWStep 5: (c) Labor cost based on the data from 16 to 30
VIEWStep 6 (d) What percentage of variance
VIEW
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 8 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning