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Posted: August 31st, 2020
Fixed and Variable Costs Assignment | Homework For You
Required Questions:
- (5 marks) Compute Zeller Electric’s fixed and variable costs using the high-low method. Predict the customer service department costs for a week in which 300 requests are made, based on your high-low analysis. Better answers will show all computations.
- (15 marks) Compute Zeller Electric’s fixed and variable costs using linear regression analysis. Predict the customer service department costs for a week in which 300 requests are made based on your regression analysis. Better answers report the goodness of fit statistic, i.e., the coefficient of determination (R2) and include a screen capture of the regression results to support your computation. [NOTE: University of Guelph students have access to the online training resources at Lynda.com. Lynda.com’s course, “Excel Essential Training” provides basic Excel training. The two Lynda.com courses “Excel Statistics Essential Training: 1” and “Excel Statistics Essential Training: 2” provides instruction in regression using Excel beyond that provided in the course textbook.]
- (10 marks) Zeller Electric’s prediction of future customer service department costs depends not only on the sophistication of its prediction model (e.g. high-low vs. linear regression), but also on the quality of the data used to make the prediction. Identify any “outlier(s)” in the weekly data provided (i.e., datapoint(s) that differ significantly from other datapoints). Discuss how excluding any outlier(s) changes the prediction of customer service department costs. Better answers will state which observations were outlier(s); quantify the effect of excluding the identified outlier(s); discuss the advantages and disadvantages of excluding the outliers; and explain how outlier(s) were identified. [Note: the is no one “correct” way to identify outliers.]
- (5 marks) What additional data would you suggest Julie request to refine her prediction of future service department costs? Accounting homework help
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