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

Operational Management, I have a take home exam that I need to be solved 10...

I have a take home exam that I need to be solved 100 % correct , please . I need it within 23 hours EXACTLY from now please . Thank you so much and I am really looking forward to s

Describe the importance of the calculation, Discuss the importance of the c...

Discuss the importance of the calculation and interpretation of ratios, to complete an effective financial ratio analysis?

Explain service companies and activity-based costing, Which of the followin...

Which of the following statements regarding service companies and activity-based costing (ABC) is true?

Process analysis, Process Analysis Process Analysis means the study of...

Process Analysis Process Analysis means the study of the overall process in factory (plant). It analyses every step of the manufacturing process and aims at improving the indu

Explain when quality discounts are introduced, When quality discounts are i...

When quality discounts are introduced, will optimum order quantity be made smaller, unchanged, or larger? Illustrate by using a numerical example.

Describe the cleanliness and atmosphere, First, select an independent resta...

First, select an independent restaurant located in California (fast food, fast casual restaurant, casual dining restaurant or buffet restaurant) and dine in the restaurant. You wil

Objectives to draw the differing expectations of club member, Q1 Evaluate t...

Q1 Evaluate the service to club members and casual flyers by completing a table similar to Table 3.1. Q2 Chart the five performance objectives to show the differing expectations

Production control function, Production control Function 1. Dispatchi...

Production control Function 1. Dispatching : Dispatching may be  defined as setting  production activities in motion through  the  release  of orders ( work order shop order)

Explain average performance of the system, Refer to the results from the Si...

Refer to the results from the SimQuick simulation model below to answer the following 5 multiple-choice questions. You will see that the results are similar to the two-teller, bank

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