=+1 Estimate the regression equation for:

(a) set-up costs and number of set-ups and

(b) set-up costs and number of set-up hours. You should obtain the following results:

Regression 1: Set-up costs = a + (b × No. of set-ups)

Variable Coefficient Standard error t-Value Constant $12 890 $61 364 0.21 Independent variable 1: no. of set-ups $426.77 $117 2.49 r 2

= 0.47; Durbin–Watson statistic = 1.65 Regression 2: Set-up costs = a + (b × No. of set-up hours)

Variable Coefficient Standard error t-Value Constant $6 573 $25 908 0.25 Independent variable 1: no. of setup-hours $56.27 $8.90 6.32 r 2

= 0.85; Durbin–Watson statistic = 1.50