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. Following is the cost information for Camp Rainbow’s operations last summer: Week Number of Campers Cost to Run Camp 1 110 $8,850 2 112 9,380 3 148 11,820 4 102 8,190 5 160 12,150 6 154 11,540 7 156 11,420 8 162 11,250 Required: 1. Perform a least-squares regression analysis on Camp Rainbow’s data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 2 decimal places.)

Answer 1

Answer:

The output of Regression analysis is as below:

Hence:

Fixed cost = $2619.74

Variable cost per camper = $57.65

The cost equation is:

Cost to Run Camp = $2,619.74 + $57.65 * Number of campers