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A Property Manager Wants to Estimate the Annual Costs of Window

question 6

Essay

A property manager wants to estimate the annual costs of window cleaning for a newly acquired office building. She collected the following information related to costs of the 10 properties she currently manages:
Σxi = 17,470 Σx 2 = 34,125,100, where x is the window surface (ft2)
i Σyi = 1,350,955 Σy 2 = 203,605,360,640 and Σxiyi = 2,635,901,696, where y is the
i cleaning costs
Determine a CER equation for the cleaning costs and the correlation coefficient.

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Definitions:

Full Disclosure Principle

An accounting principle requiring that financial statements present all relevant information about the business's financial condition and performance.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the goods and the cost of shipping as soon as the goods leave the seller's premises.

Goods In Transit

Items being transported from one location to another, which have not yet reached the recipient or destination point.

Purchaser's Inventory

Goods and materials that a business holds for the ultimate goal of resale.

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