25 Feb SMU Delivery operates a seasonal delivery service
SMU Delivery operates a seasonal delivery service from April 1 to September 30. The presidentof the company is trying to determine the costs of operating the delivery vehicles for theupcoming year. The president has noticed two trends based on the historical cost of operating thevehicles.1. operating cost appears to change based on the number of deliveries they make2. operating cost appears to change based on the number of kilometres drivenThe president compiled the following information:DeliveriesMadeKilometresDrivenOperatingCostApril 360 2,300 $4,600.00May 452 2,640 $5,350.00June 420 1,900 $4,450.00July 340 2,160 $4,480.00August 475 2,700 $5,270.00September 325 1,940 $4,370.00Required:1. Using the high-low method, determine the cost equation based on using DeliveriesMade as the independent variable show your work (2 points)2. Using the high-low method, determine the cost equation based on usingKilometres Driven as the independent variable show your work (2 points)3. Using Regression Analysis in Excel, determine the cost equation based on usingDeliveries Made as the independent variable. Copy the Excel Output into yourword document. (3 points)4. Using Regression Analysis in Excel, determine the cost equation based on usingKilometres Driven as the independent variable. Copy the Excel Output into yourword document. (3 points)5. Write a memo to the president of SMU Delivery advising which cost equationshould be used and why. (5 Points)
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