In: Advanced Math
House |
Square Feet |
External Openings |
Costs |
1 |
2,500 |
13 |
$2,810 |
2 |
3,010 |
15 |
3,742 |
3 |
2,800 |
12 |
3,100 |
4 |
2,850 |
12 |
3,150 |
5 |
4,600 |
19 |
4,700 |
6 |
2,700 |
13 |
3,225 |
7 |
2,600 |
11 |
2,920 |
8 |
2,550 |
11 |
2,836 |
9 |
2,600 |
10 |
3,242 |
10 |
3,700 |
16 |
4,112 |
11 |
2,650 |
13 |
3,210 |
12 |
3,550 |
16 |
3,965 |
Required
Using the high-low cost estimation technique and square feet as the independent variable, determine the cost of painting a 3,300-square-foot house with 14 external openings. Also determine the cost for a 2,400-square-foot house with 8 externals openings.
Repeat requirement 1, but use number of external openings as the independent variable.
Plot the cost data against square feet and against openings. Which variable is a better cost driver? Why?
Create a multiple regression model for predicting cost based on openings and square feet. Comment on the statistical reliability and precision of this model.
What are the sustainability issues for this company, and what is the role of cost estimation in this regard?