The multiple linear regression analysis is one of the most reliable and accurate tools for cost estimating. The validity of the analysis depends on the relevance of the independent variables selected. Please respond to the following: Discuss what independent variables should be selected to estimate the maintenance costs for a manufacturing company using multiple linear regression analysis. Explain why these independent variables were selected. What are other variables should be considered, but decided not to include? Explain why.
Q: Write a commentary explaining what the main differences are between the styles of two…
A: Section 1: IntroductionIn the realm of professional self-presentation, two key mediums are the…
Q: Covid demonstrated to us that companies might not always require every employee and this depends on…
A: Human resource management is the aspect of management that is concerned with managing, supporting,…
Q: ffective communication is the lifeblood of human interaction, the currency through which ideas are…
A: Effective communication refers to the clear, terse, and meaningful exchange of information between…
Q: Mangement Coordination is the art of harmonizing efforts and resources to achieve shared…
A: Coordination refers to the process of organizing and harmonizing different rudiments or…
Q: What multifaceted functions and intricate responsibilities characterize staff positions within…
A: Staff authority refers to a manager's power to give tasks and make decisions on behalf of their team…
Q: A private corporations new CEO took over with the mission of preventing a competitor's proposed…
A: This report addresses the implementation of a 360-degree rating system to pinpoint performance…
Q: All computations must be done and shown manually. Timothy is retiring from his job soon at which…
A: The objective of the first question is to determine which retirement offer Timothy should choose…
Q: explain what strategies can organizations use to enhance group cohesion during periods of change or…
A: Navigating change and uncertainty is a constant challenge for organizations. During such periods,…
Q: Which of the following is not a way that a learning experience platform (LXP) can make self-directed…
A: The objective of the question is to identify which of the given options is not a way that a Learning…
Q: 10. Why should production meetings be held regularly?
A: Production meetings serve as a cornerstone in the efficient operation of any project-driven…
Q: How do line organizations handle cross-functional collaboration and teamwork?
A: A line organization can be compared to a tree. A line organization is constructed in the same way as…
Q: As an essential strategic expert for a global organizatiion give a layout a report on the company.…
A: Strategic management is the most common way of figuring out and carrying out long-haul plans and…
Q: As a recently appointed board member of private company assess how a company can open human…
A: One of the main duties of a recently appointed board member of a private company is to evaluate and…
Q: discuss, How do internal employee promotions impact team dynamics and performance?
A: An internal promotion occurs when a worker advances within the organization. Increased financial…
Q: Discuss how CSR contributes to the sustainability of an organisation
A: The voluntary actions that businesses take to incorporate social, environmental, and ethical…
Q: Why does Ethisphere defines ethical behavior in five areas: impact, management, governance, program,…
A: Ethisphere's definition of ethical behavior across five areas—impact, management, governance,…
Q: Describe a part of the conventions that resonates with personal ethics and build an argument for why…
A: A code of ethics provides a framework and guidelines for behavior that should be exhibited so that…
Q: Business portfolio analysis refers to a(n) Multiple Choice technique that managers use to quantity…
A: The business portfolio refers to the collection or group of strategic business units (SBUs) or…
Q: explain.. How does skills gap analysis help organizations identify areas of skill deficiency within…
A: Using skill gap analysis, a corporation can determine how its employees' talents compare to what is…
Q: What role does innovation and creativity play in developing novel approaches to management planning?
A: Management planning is the systematic process of setting organizational goals and objectives,…
Q: How can managers proactively mitigate the escalation of employee grievances within the workplace…
A: Employee grievances are formal complaints filed by employees against their employer, colleagues, or…
Q: How does a line organization facilitate swift communication and decision-making processes?
A: Within the context of a line organization, the hierarchical structure is meticulously defined, with…
Q: What role does technology play in Business Process Reengineering initiatives?
A: Business Process Reengineering (BPR) is a strategic approach that organizations employ to…
Q: Based on this article: Source:…
A: In the dynamic landscape of the South African mining industry, companies are grappling with…
Q: how does spotify use design thinking and design thinking tools in its service process
A: The creative execution of innovative activities within an organization is called innovation…
Q: What are the implications of implementing non-monetary forms of recognition and rewards as part of…
A: Non-monetary recognition and rewards are potent instruments, surpassing traditional compensation…
Q: describe the challenges of retaining high-potential employees in a competitive talent market
A: Employees who demonstrate initiative by taking on new responsibilities and showing leadership…
Q: What are the risks of maintaining an outdated or inflexible organizational structure?
A: Inflexible organizational structure, marked by a steadfast commitment to hierarchical rigidity and…
Q: Chapter 5, Problem 5 A producer of felt-tip pens has received a forecast of demand of 30,000 pens…
A: The objective of the question is to find out the selling price per pen to achieve a monthly profit…
Q: Explain the impact that leadership has on an organization's ability to function while it is…
A: The impact of leadership on an organization's ability to function during insolvency is a critical…
Q: 600-word Letter of Complaint of an issue in the workplace.
A: [Your Name][Your Position/Title][Company Name][Company Address][City, State, Zip Code][Email…
Q: Organisational structure topic... What are some potential risks associated with process-based…
A: The process-based departmentation approach involves organizing an organization's divisions or…
Q: Discuss the importance of documentation and record-keeping in performance appraisal.
A: Performance evaluations rate workers. Employers use them to track employees' job performance over…
Q: How does job autonomy and decision-making authority impact employee behavior?
A: Job autonomy refers to an employee's degree of independence. It's all about their autonomy in…
Q: Explain What are the benefits of involving key stakeholders in the management planning process?
A: The integration of key stakeholders in the management planning process is a strategic approach that…
Q: required to identify and discuss any two diversity management issues in the workplace. The…
A: Diversity management is the process of creating an inclusive workplace environment that values and…
Q: Describe the impact of technology on modern organizational development practices.
A: Organizational development is a meticulously devised and methodical approach aimed at amplifying the…
Q: Summarize the article “A Vegan Diet, Eating for the Environment” in your own words.…
A: In the modern era, discussions surrounding sustainable living have gained significant traction.…
Q: discuss .. how do organizations manage the complexities of enforcing employee policies consistently…
A: Employee policies and procedures explain the expected behavior for all employees, regardless of…
Q: What are the long-term implications of a well-designed and adaptive organizational structure?
A: The organizational structure of a corporation refers to the hierarchical arrangement of its teams,…
Q: In the realm of organizational management, what methodologies and mechanisms can enterprises employ…
A: Organizational Policies are a set of guidelines . Every business constructs them with ease of use in…
Q: How did the Defend Trade Secrets Act modify U.S. trademark law? Do you think this act was an…
A: The Defend Trade Secrets Act (DTSA) is a federal law enacted in the United States in 2016, which…
Q: Consider the challenges of global manufacturing and supply chain management. Pay attention to page…
A: The case study analyzes four key creation area systems inside worldwide creation organizations:…
Q: Select six stakeholders (3 internal to the company and 3 external, (e.g. Unilever in Indonesia) from…
A: Stakeholder management is the precise methodology of recognizing, breaking down, focusing on, and…
Q: Effective employee relations management encompasses a complex interplay of principles that navigate…
A: Taking care of employee relations entails strengthening the relationship between an organization and…
Q: low productivity and increased rescheduling costs
A: Low productivity and increased rescheduling costs are interconnected issues that can severely impact…
Q: Explain encompassing factors and principles delineate a robust motivational system within…
A: A motivational system identifies the thought processes and tools that compel individuals to pursue…
Q: be given a list of topics they can choose from. Students will be asked to discuss the history of…
A: Note: As per the Bartleby guidelines, answer provided here is in generalised form Introduction:A…
Q: It is clear that reputation and financial success are related. Analyze this assertion while…
A: Beyond profit-centric objectives, corporate social responsibility (CSR) represents a unique business…
Q: Describe the impact of mergers and acquisitions on global operations management
A: Mergers and acquisitions are strategic moves undertaken by companies to combine resources, expand…
The multiple linear regression analysis is one of the most reliable and accurate tools for cost estimating. The validity of the analysis depends on the relevance of the independent variables selected.
Please respond to the following:
- Discuss what independent variables should be selected to estimate the maintenance costs for a manufacturing company using multiple linear regression analysis.
- Explain why these independent variables were selected. What are other variables should be considered, but decided not to include? Explain why.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months appear in the file P13_40.xlsx. Use regression analysis to determine which measure, DLH or Units (or both), should be used for the budget. How would the regression equation be used to obtain the budget for the firms overhead costs?The owner of a restaurant in Bloomington, Indiana, has recorded sales data for the past 19 years. He has also recorded data on potentially relevant variables. The data are listed in the file P13_17.xlsx. a. Estimate a simple regression equation involving annual sales (the dependent variable) and the size of the population residing within 10 miles of the restaurant (the explanatory variable). Interpret R-square for this regression. b. Add another explanatory variableannual advertising expendituresto the regression equation in part a. Estimate and interpret this expanded equation. How does the R-square value for this multiple regression equation compare to that of the simple regression equation estimated in part a? Explain any difference between the two R-square values. How can you use the adjusted R-squares for a comparison of the two equations? c. Add one more explanatory variable to the multiple regression equation estimated in part b. In particular, estimate and interpret the coefficients of a multiple regression equation that includes the previous years advertising expenditure. How does the inclusion of this third explanatory variable affect the R-square, compared to the corresponding values for the equation of part b? Explain any changes in this value. What does the adjusted R-square for the new equation tell you?A small computer chip manufacturer wants to forecast monthly ozperating costs as a function of the number of units produced during a month. The company has collected the 16 months of data in the file P13_34.xlsx. a. Determine an equation that can be used to predict monthly production costs from units produced. Are there any outliers? b. How could the regression line obtained in part a be used to determine whether the company was efficient or inefficient during any particular month?
- Suppose that a regional express delivery service company wants to estimate the cost of shipping a package (Y) as a function of cargo type, where cargo type includes the following possibilities: fragile, semifragile, and durable. Costs for 15 randomly chosen packages of approximately the same weight and same distance shipped, but of different cargo types, are provided in the file P13_16.xlsx. a. Estimate a regression equation using the given sample data, and interpret the estimated regression coefficients. b. According to the estimated regression equation, which cargo type is the most costly to ship? Which cargo type is the least costly to ship? c. How well does the estimated equation fit the given sample data? How might the fit be improved? d. Given the estimated regression equation, predict the cost of shipping a package with semifragile cargo.An antique collector believes that the price received for a particular item increases with its age and with the number of bidders. The file P13_14.xlsx contains data on these three variables for 32 recently auctioned comparable items. Estimate a multiple regression equation using the given data. Interpret each of the estimated regression coefficients. Is the antique collector correct in believing that the price received for the item increases with its age and with the number of bidders? Interpret the standard error of estimate and the R-square value for these data.The management of a technology company is trying to determine the variable that best explains the variation of employee salaries using a sample of 52 full-time employees; see the file P13_08.xlsx. Estimate simple linear regression equations to identify which of the following has the strongest linear relationship with annual salary: the employees gender, age, number of years of relevant work experience prior to employment at the company, number of years of employment at the company, or number of years of post secondary education. Provide support for your conclusion.
- A trucking company wants to predict the yearly maintenance expense (Y) for a truck using the number of miles driven during the year (X1) and the age of the truck (X2, in years) at the beginning of the year. The company has gathered the data given in the file P13_13.xlsx. Note that each observation corresponds to a particular truck. Estimate a multiple regression equation using the given data. Interpret each of the estimated regression coefficients. Also, interpret the standard error of estimate and the R-square value for these data.Management of a home appliance store would like to understand the growth pattern of the monthly sales of Blu-ray disc players over the past two years. Managers have recorded the relevant data in the file P13_33.xlsx. a. Create a scatterplot for these data. Comment on the observed behavior of monthly sales at this store over time. b. Estimate an appropriate regression equation to explain the variation of monthly sales over the given time period. Interpret the estimated regression coefficients. c. Analyze the estimated equations residuals. Do they suggest that the regression equation is adequate? If not, return to part b and revise your equation. Continue to revise the equation until the results are satisfactory.The file P14_01.xlsx contains data on 100 consumers who drink beer. Some of them prefer light beer, and others prefer regular beer. A major beer producer believes that the following variables might be useful in discriminating between these two groups: gender, marital status, annual income level, and age. a. Use logistic regression to classify the consumers on the basis of these explanatory variables. How successful is it? Which variables appear to be most important in the classification? b. Consider a new customer: Male, Married, Income 42,000, Age 47. Use the logistic regression equation to estimate the probability that this customer prefers Regular. How would you classify this person?
- An automobile manufacturer is considering whether to introduce a new model called the Racer. The profitability of the Racer depends on the following factors: The fixed cost of developing the Racer is triangularly distributed with parameters 3, 4, and 5, all in billions. Year 1 sales are normally distributed with mean 200,000 and standard deviation 50,000. Year 2 sales are normally distributed with mean equal to actual year 1 sales and standard deviation 50,000. Year 3 sales are normally distributed with mean equal to actual year 2 sales and standard deviation 50,000. The selling price in year 1 is 25,000. The year 2 selling price will be 1.05[year 1 price + 50 (% diff1)] where % diff1 is the number of percentage points by which actual year 1 sales differ from expected year 1 sales. The 1.05 factor accounts for inflation. For example, if the year 1 sales figure is 180,000, which is 10 percentage points below the expected year 1 sales, then the year 2 price will be 1.05[25,000 + 50( 10)] = 25,725. Similarly, the year 3 price will be 1.05[year 2 price + 50(% diff2)] where % diff2 is the percentage by which actual year 2 sales differ from expected year 2 sales. The variable cost in year 1 is triangularly distributed with parameters 10,000, 12,000, and 15,000, and it is assumed to increase by 5% each year. Your goal is to estimate the NPV of the new car during its first three years. Assume that the company is able to produce exactly as many cars as it can sell. Also, assume that cash flows are discounted at 10%. Simulate 1000 trials to estimate the mean and standard deviation of the NPV for the first three years of sales. Also, determine an interval such that you are 95% certain that the NPV of the Racer during its first three years of operation will be within this interval.An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. - Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume.- What is the variable cost per unit produced?- Compute the coefficient of determination. What percentage of the variation in total cost can be explained by production volume?- The company’s production schedule shows 500 units must be produced next month. Predict the total cost for this operation.Regression analysis is a powerful and commonly used tool in business research. One important step in regression is to determine the dependent and independent variable(s). In a bivariate regression, which variable is the dependent variable and which one is the independent variable? What does the intercept of a regression tell? What does the slope of a regression tell? What are some of the main uses of a regression? Provide an example of a situation wherein a bivariate regression would be a good choice for analyzing data. Justify your answers using examples and reasoning.