Question

Company X is trying to estimate future inspection fees based on prior experience. You (the accountant) requested and gathered from various managers the number of orders received each week,the average weight of each order, and the average cost of each order. You then compared this data to the actual inspection fees incurred. The data is summarized below:

Week	Inspection Fees	# orders received	Size of order (lbs)	Cost of order
Week 1	$57,600	219,379	889,114	$25,847
Week 2	$36,500	126,965	320,181	$12,748
Week 3	$40,500	197,583	700,000	$43,910
Week 4	$47,200	231,072	539,044	$9,421
Week 5	$54,700	255,388	677,425	$20,382
Week 6	$56,500	142,072	396,396	$16,329
Week 7	$39,500	151,618	468,812	$11,097
Week 8	$30,400	90,306	267,177	$10,190
Week 9	$20,000	72,718	187,030	$6,082
Week 10	$50,000	123,008	466,636	$16,723
Week 11	$30,000	126,341	135,045	$2,932
Week 12	$20,000	41,988	204,808	$4,202
Week 13	$42,900	155,783	576,713	$9,420
Week 14	$55,300	266,358	603,139	$19,635
Week 15	$28,000	46,367	211,147	$9,319
Total	$609,100	2,246,946	6,642,667	$218,237
Per Week	40607	149796	442844	$14,549

Multiple Regression

Now you are really starting to have fun and before taking your new numbers to the boss you decide you can do even better. You decide to do multiple regression to see if you can get an

even better explanation of what is driving inspection fee costs. Run Multiple Regression on the two best variables.

Construct a new equation:________

Calculate a new estimate of week 16 inspection fees.

Answer 1