Reference no: EM133135752
Question - Camp Rainbow offers overnight summer camp programs for children ages 10-14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and girls attend during the even-numbered weeks. While at the camp, participants make crafts, participate in various sports, help care for the camp's resident animals, have cookouts and hayrides, and help assemble toys for local underprivileged children.
The camp provides all food as well as materials for all craft classes and the toys to be assembled. One cabin can accommodate up to 10 children, and one camp counselor is assigned to each cabin. Three camp managers are on-site regardless of the number of campers enrolled. The results of the least-squares regression of the number of campers and the cost to run camp are given below.
Following is the cost information for Camp Rainbow's operations last summer:
|
Week
|
Number of Campers
|
Cost to Run Camp
|
|
1
|
90
|
$8,050
|
|
2
|
118
|
8,460
|
|
3
|
156
|
10,900
|
|
4
|
174
|
11,100
|
|
5
|
188
|
13,670
|
|
6
|
184
|
14,300
|
|
7
|
170
|
12,325
|
|
8
|
156
|
11,270
|
Required -
1. Perform a least-squares regression analysis on Camp Rainbow's data.
2. Using the regression output, create a cost equation (y = a + bx) for estimating Camp Rainbow's operating costs.
3. Using the least-squares regression results, calculate the camp's expected operating cost if 170 children attend a session.