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Window All Windows R. Window Position Window om MSCIOS ShareP Method of Least Squares Instructor Peter Dorf Name The accounting department of Insecunty Protection Services, a company that provides security services for rich, famous, and secure people is analyzing the costs of its accounting services Analysts have selected the following cont drivers paychecks processed, invoices processed, customer accounts maintained responses to routine inges, and special analyses COSTS PAYCHECKS INVOICES CUSTOMER ROUTINE SPECIAL PROCESSED PROCESSED ACCOUNTS INQUIRES ANALYSIS 1 57701.00 12.590 1.340 325 0 2 6.469 80 11.980 1.180 310 0 3 6.129.40 10.950 1.050 280 4 45 1 5.905 90 10.280 930 245 54 0 5 5,659.50 9,020 840 205 68 2 6 5.115.80 3130 700 83 2 7 510130 24540 700 160 97 3 8 5.488 90 6.900 630 9 140 112 4 5,284.80 8.930 630 115 101 2 10 5,538 40 9,800 120 33 0 6.129,30 10560 890 175 1 12 6,026 10 11.560 1,070 200 68 0 13 6,51720 11.710 1.240 240 55 0 14 6,600.50 12 460 1.390 285 45 0 15 7,153 10 13 520 1.450 300 139 1 16 7.207.60 13.620 1.510 315 24 0 TOTALS $97 341.10 169.730 16.440 3.600 1.037 16 760 INCLUDE A PRINTOUT OF YOUR EXCEL REGRESSION ANALYSIS Using the method of least squares, run a simple regression using the number of invoices processed as the single independent variable: What is the cost formula for this regression? COST FORMULA B. Run a multiple regression using the fve independent variables paychecks processed invoices processed, customer accounts routine inquires, special analysis. What is the cost formula for this mutiple regression? Which regression equation is better, the simple regression of the multiple regression? Why? COST FORMULA WHICH REGRESSION EQUATION IS BETTER, THE SIMPLE REGRESSION OR THE MULTIPLE REGRESSION? WHY? c. Assuming the following level of cost driver volume for a month, what is the accounting department's estimated costs of doing business? (Don't forget to include the intercept of the regression in your estimate.) 10,000 paychecks processed 1,000 invoices processed 300 customer accounts maintained 50 routine inquires 1 special analysis