5. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 25,500 nursing hours are predicted for the month. 6. Cleary runs a regression analysis using nursing hours as the cost driver to predict total hospital (Click the icon to view the regression analysis.) If 25,500 nursing hours are predicted for the month, what is the total predicted hospital overhead? 7. Cleary then ran the regression analysis using number of patient days as the cost driver. The Excel output from the regression is shown here: (Click the icon to view the regression analysis.) 8. Which regression analysis (using nursing hours or using number of patient days as the cost driver) produces the best cost equation? Explain your answer. SUMMARY OUTPUT - Nursing hours as cost driver Regression Statistics Multiple R 0.967848 R Square 0.93673 Adjusted R Square 0.920913 Standard Error 16,568.3268 Observations 6 ANOVA df MS F. 59.221259 Significance F 0.001534 Regression Residual 1 4 5 SS 16,256,795,521 1,098,037,812 17,354,833,333 16,256,795,521 274,509,453 Total Standard Lower Upper 95% Coefficients Error t Stat P-value 95% 187,378.98 39,923.061 4.694 298,223.164 Intercept X Variable 1 0.00976,534.789 0.000 7.954 12.44 1.617 7.696 16.933 Print Done SUMMARY OUTPUT - Using number of patient days as cost driver Regression Statistics Multiple R 0.757705 0.574117 0.467646 42,985.84532 Adjusted R Square Standard Error Observations ANOVA df SS MS F. Significance F Regression 1 5.392247 0.080948 9,963,701,742 7,391,131,591 17,354,833,333 9,963,701,742 1,847,782,898 Residual Total 5 Standard Lower Upper 95% Coefficients Error t Stat P-value 95% | Intercept x Variable 1 271,537.44 53.13 95,772.174 22.88 2.835 2.322 0.047 0.081 5,631.253 -10.395 537,443.62 116.655 Data Table EA Hospital Month Overhead Costs July ........ $ 485,000 August ...... 540,000 September .. 420,000 October ..... $ 462,000 November ... $ 579,000 December ... $ 455,000 Nursing Hours 25,000 26,700 20,000 21,900 32,000 20,400 Number of Overhead Cost Overhead Cost Patient Days per Nursing Hour per Patient Day 3,800 $ 19.40 $ 127.63 4,360 $ 20.22 $ 123.85 4,210 $ 21.00 $ 99.76 3,450 $ 21.10 $ 133.91 5,600 $ 18.09 $ 103.39 3,270 $ 22.30 $ 139.14 A