this also 2. Sing-Sing Co. exports fruit to countries in the Northern Hemisphere
ID: 3350449 • Letter: T
Question
this also
2. Sing-Sing Co. exports fruit to countries in the Northern Hemisphere. The shipping manager is concerned about the control of shipping costs. She feels that shipping costs are mostly driven by weight of the shipment. To estimate the cost she has taken the following costs from the previous year: Kilograms shipped 650 469 676 690 682 558 488 491 514 669 607 554 Month Shipping cost $87,180 83,790 90,675 90,862 87,780 88,470 81,166 87,210 81,630 84,540 86,385 82,395 January February March ril May June July August September October November December The shipping manager wants to use the high-low method of cost estimation and then compare it to the actual cost for the month of February in the current year. But the accountant has done a regression analysis on the previous two years, which produced the following output:Explanation / Answer
Regression equation is Y = 70827.34 + 25.8449 * x
If x = 438.
Estimated shipping cost = 70827.34 + 25.8449 * 438 = 82147
Hence, the correct answer is A. Regression analysis provides best estimate with estimate which is 15 $ lower than acual.
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