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 what should johnson estimate time and parts costs, Johnson Industri...

Johnson Industries received a contract to develop and produce four high intensity long distance receiver/transmitters for cellular telephones. The first took 2000 labour hours, and

Explain permissive actions act, Why do unions emphasize the need for cohesi...

Why do unions emphasize the need for cohesiveness? So they can issue calls for "solidarity" to members during periods of threat Because group members tend to behave different

Explain matching supply with demand by cachon/terwiesch, From "Matching Sup...

From "Matching Supply with Demand" - Cachon/Terwiesch (Highway) While driving home for the holidays, you can't seem to get Little's Law out of your mind. You note that your aver

How the expected time estimate is calculated in pert, How the expected time...

How the expected time estimate is calculated in PERT ? In PERT the expected time estimate is computed on the basis of Beta distribution of time estimates.

Explain inventory decreases and inventory increases, What happens to invent...

What happens to inventory as the number of kanban cards increases? Inventory decreases Inventory increases Inventory remains the same The number of kanban cards has no

Explain level of threshold service of a least-cost system, What is meant by...

What is meant by the level of threshold service of a least-cost system

Describe designing a database and relational schema, You viewed two video r...

You viewed two video resources, Designing a Database and Relational Schema of the "Priscilla/Dave" project. At the end of the logical design phase, there were five tables (Pet, Pet

Finish a net material requirements schedule, Complete a net material requir...

Complete a net material requirements schedule for: a) All items (10 schedules in all), assuming the requirement for each BOM item is 1. b) All 10 items, assum

Explain if you are picketing your employer for higher wages, If you are pic...

If you are picketing your employer for higher wages and your neighbour is hired to replace you only while you march, the Mackay Doctrine says that, when the strike is over, your ne

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