Jefferson county airport handles several daily commuter flights and many private

Question

Jefferson county airport handles several daily commuter flights and many private flights. The county budget officer has compiled the following data regarding the costs and activity over the past year:

A) Build a spreadsheet and use excel commands to perform a least-squares regression. Estimate the variable and fixed cost component in the aiprort's cost.

B) Predict the airport's costs during a month when 1,500 flights originate at the airport.

PLEASE BREAKDOWN THE PROBLEM AND ADDRESS BOTH PARTS A & B...THANKS!

Month Airport Costs Flights Originating at JCA January $20,000 1,200 February $19,000 1,000 March $18,000 900 April $19,000 1,400 May $17,000 800 June $20,000 1,100 July $21,000 1,500 August $17,000 900 September $21,000 1,200 October $19,000 1,000 November $24,000 1,400 December $18,000 1,100

Explanation / Answer

A)

Regression analysis

Fixed cost = $11796 (approximately)

Variable cost = $6.77 per activity

B)

Cots for 1500 flights = $11796 + $6.77 x 1500 = $21951

SUMMARY OUTPUT Regression Statistics Multiple R 0.761630769 R Square 0.580081428 Adjusted R Square 0.538089571 Standard Error 1342.442005 Observations 12 ANOVA df SS MS F Significance F Regression 1 24895161.29 24895161.29 13.81414081 0.00399669 Residual 10 18021505.38 1802150.538 Total 11 42916666.67 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 11795.69892 2086.745088 5.652678419 0.000211669 7146.14114 16445.25671 7146.14114 16445.25671 X Variable 1 6.774193548 1.822618028 3.716737926 0.00399669 2.713147526 10.83523957 2.713147526 10.83523957

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.