Explain regression equation relating expected travel, Operation Management

Assignment Help:

Accountants at the firm Walker and Walker believed that several traveling executives submit unusually high travel vouchers when they return from business trips. The accountants took a sample of 200 vouchers submitted from the past year; they then developed the following multiple regression equation relating expected travel cost (Y) to number of days on the road (X1) and distance traveled (x2) in miles:

YN = $90.00 + $48.50X1 + $0.40X2

The coefficient of correlation computed was 0.68.


(a) If Thomas Williams returns from a 300-mile trip that took him out of town for five days, what is the expected amount that he should claim as expenses?

(b) Williams submitted a reimbursement request for $685; what should the accountant do?

(c) Comment on the validity of this model. Should any other variables be included? Which ones? Why?


Related Discussions:- Explain regression equation relating expected travel

Explain is self-preservation a moral imperative, Is self-preservation a mor...

Is self-preservation a moral imperative or just a fact?

Explain what is the revised forecast for the second quarter, Q. 4. A two ye...

Q. 4. A two year sales history by quarter for a seasonal product is given below. Sales Quarter First Year Second Year 1 30 42 2 48 58 3 60 74 4 35 44 a) Using

Explain the rop that will provide a risk of stockout, Given this informatio...

Given this information: Expected demand during lead time = 300 units Standard deviation of lead time demand = 30 units Determine each of the following, assuming that lead time dema

CALCULATING THE SLACK, Time (in Days) Activity Immediate Predecess...

Time (in Days) Activity Immediate Predecessor Optimistic Most Likely Pessimistic A - 3 6 8 B - 2 4 4 C - 1 2 3 D C 6 7 8

Explain what would you recommend the company, What would you recommend the ...

What would you recommend the company (Rochem Ltd) should do?

Define management practices increasing government regulation, How do you th...

How do you think management practices might change in response to increasing government regulation in the banking and health care industries?

Describe the correlation between realization factor, Can anyone please expl...

Can anyone please explain the correlation between Realization Factor, Capacity, Utilization, and Rolled Throughput Yield, please? Equations would also be nice.

Explain opportunity costs of capital at tep, How would the EBQ change if th...

How would the EBQ change if the set-up costs were reduced by 50 percent, and the holding costs were reassessed by 40 percent, taking account of the opportunity costs of capital at

How measure of overall performance, Cunningham Performance Auto, Inc., mod...

Cunningham Performance Auto, Inc., modifies 375 autos per year. The manager, Peter Cunningham, is interested in obtaining a measure of overall performance. He has asked you to prov

Explain cost management processes, Cost management processes are involved i...

Cost management processes are involved in estimating, budgeting and controlling costs so that the project can be completed within the approved budget.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd