A company want to find out if there is a linear relationship between indirect labor expense (ILE), in dollars, and direct labor hours (DLH). Data for direct labor hours and indirect labor expense for 25 months are given.

Using that data, find the estimated regression equation which can be used to estimate ILE when using DLH as the predictor variable.

Please see attached Excel for data.

ILE_and_DLH data

Question 7 options:

ILE = 60.0419 + 2.1355(DLH)

ILE = 47.5504 + 4.8996(DLH)

ILE = 0.4291 + 59.4174(DLH)

ILE = 171.7567 + 9.3172(DLH)