Solve Using an Excel Spreadsheet:
You work for a company that builds environmentally controlled inventory storage facilities for electronic parts.
All the facilities you have built in the past are listed in the table below.
Assuming no inflation, write an equation that predicts the total cost of one of your storage facilities.
The objective is to produce a reasonable model that fits the existing data with an R 2 > 0.95.
("Reasonable" in this case excludes anything greater than a 3rd order polynomial.)
|
Floors
|
Gross Floor Area (ft2)
|
Perimeter (ft)
|
Total Cost
|
|
2
|
600
|
200
|
$2,084,440
|
|
3
|
500
|
103
|
$1,703,1715
|
|
1
|
1000
|
800
|
$3,659,600
|
|
4
|
1435
|
450
|
$6,158,784
|
|
1
|
2000
|
179
|
$5,341,878.5
|
|
2
|
600
|
98
|
$1,800,574
|
|
3
|
780
|
74
|
$2,295,105
|
|
4
|
1400
|
500
|
$6,347,960
|
|
1
|
600
|
196
|
$1,800,574
|
|
2
|
3000
|
219
|
$8,248,677
|
|
3
|
600
|
600
|
$4,032,540
|
|
4
|
4000
|
800
|
$14,638,400
|
|
1
|
600
|
100
|
$1,666,990
|
|
2
|
400
|
234
|
$1,669,782
|
|
3
|
2540
|
700
|
$9,390,006
|
|
4
|
600
|
500
|
$4,310,840
|