Personnel Costs and Cost-Driver Relations
Not what you're looking for?
Unsafe Insurance Company needs to forecast its personnel department costs. The following output was obtained from a regression program used to estimate the department's costs as a function of the number of employees: see attached file for data.
Monthly data for the past two years were used to construct these estimates. Cost relationships are expected to be the same for the coming period.
Required
1. What are the estimated personnel costs for 4,200 employees?
2. How confident are you that a significant cost-driver relation exists?
Purchase this Solution
Solution Summary
This solution provides step-by-step equations for finding estimated personnel costs and significant cost-driver relations.
Solution Preview
1. What are the estimated personnel costs for 4,200 employees?
The regression equation is estimated:
Cost = 8,421.441 + 492.703 Employees + error term
When Employees = ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Introduction to Finance
This quiz test introductory finance topics.