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Write least-squares regression equation for airports costs

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Reference no: EM131308648

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

Required:

1. Draw a scatter diagram of the airport costs shown above.

2. Build a spreadsheet: Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the variable- and fixed-cost components in the airport's cost behavior pattern.

3. Write the least-squares regression equation for the airport's costs.

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

5. Using the Excel spreadsheet prepared for requirement (2), compute the coefficient of determination (R2) for the regression equation. Briefly interpret R2.

Reference no: EM131308648

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