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The manager of Pizza Hut provides a delivery service for customers who telephone in an order. The manager would like to give callers an idea of the time it will take to deliver an order. This depends upon the distance of the customer from Stratford. The records of the last 12 deliveries are shown in the following table below
Distance (miles) Delivery Time (minutes)
X y xy x2
2.3 5 11.5 5.29
6.7 13 87.1 44.89
7.5 10 75 56.25
3.1 5 15.5 9.61
4.6 9 41.4 21.16
3.9 8 31.2 15.21
8.7 15 130.5 75.69
9.8 20 196 96.04
10 .1 18 181.8 102.01
6.5 13 84.5 42.25
7.3 12 87.6 53.29
5.2 9 46.8 27.04
75.7 137 988.9 548.73
use of best fit, y= a+bx, a= fixed cost, b= variable cost per unit
(i) Using regression analysis calculate the line of best fit through the data and interpret your values of a and b.
(ii) Forecast the time it would normally take to deliver an order for a distance of 5 miles.
(b) Using a report format, identify and appraise the sources of finance available to the Board of Directors of Dragon Limited.
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