Delta

Group Project 1: Deltas New Sonj NOTE: selective information in Exhibits 2, 4, 5, and 6 are available in Microsoft stick out format on our course website. This will make it oft easier to do regressions. Required: 1. Identify several possible drivers of requital make ups for use in estimating a salary follow function. Using one of these cost drivers, apply the high-low technique to rate the salary cost function for Delta Airlines. What driver did you select and why? How would Delta use this function to forecast costs? What are the advantages of this technique? The disadvantages? 2. use of goods and services simple regression to estimate the salary cost function for Delta Airlines. Comment on the statistical validity and meaning of your results. What are the advantages of this technique? The disadvantages? Is this technique an improvement over the high-low system? Why or why not? 3. Under what conditions do you think the cost functions estimated in Questions 1-3 will be utile for predicting the salaries for Delta in 2003? 2004? Under what conditions would they be less useful? Explain. 4. Use the high-low technique to estimate the salary cost function for JetBlue Airways Corp. How does it study to the salary cost function for Delta? 5. (This one will discover for some speculation - there is no right service!

) What volume (amount of cost driver you chose above for #1 and #2) do you think Delta can expect for Song in its runner twelvemonth of operations? Using the cost function you genuine in either #1 or #2 (the bettor of the two), predict the salaries cost for Song in its first year of operation. 6. Deltas New Song: A Case on toll Estimation in the Airline Industry Shane S. Dikolli and Karen L. Sedatole INTRODUCTION Founded in 1924, Delta Airlines is the third largest U.S. airline in operating revenues and revenue passenger miles flown. 1 Traditionally, Deltas primary aspiration came from the other full-service airlines, including United Airlines and American Airlines.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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