Applying the Concepts

McCourt Company had the following $10$ months of data on materials handling cost and number of moves:

Month Materials Handling Cost Number of Moves

January $$5,600475$

February $3,090125$

March $2,780175$

April $8,000600$

May $1,990200$

June $5,300300$

July $4,300250$

August $6,300400$

September $2,000100$

October $6,240425$

Required:

$1.$ Using the above data on material handling, using regression software such as regression function within Microsoft Excel, and fill in the missing data in the table below $($round answers to two decimal places$).$

McCourt Company

SUMMARY OUTPUT

Regression Statistics

Multiple R $0\mathrm{.}94$

R Square fill in the blank $641$e$26$fbbfeff$82\_1$

Adjusted R Square fill in the blank $641$e$26$fbbfeff$82\_2$

Standard Error $746\mathrm{.}14$

Observations $10$

ANOVA

df SS MS F Significance F

Regression $133,414,382\mathrm{.}2833,414,38260\mathrm{.}02\mathrm{.}000055$

Residual $84,453,817\mathrm{.}72556,727\mathrm{.}20$

Total $937,868,200\mathrm{.}00$

Coefficients Standard Error t Stat P$-$value

Intercept fill in the blank $641$e$26$fbbfeff$82\_3516\mathrm{.}991\mathrm{.}930\mathrm{.}09$

X Variable $1$ fill in the blank $641$e$26$fbbfeff$82\_4$ fill in the blank $641$e$26$fbbfeff$82\_57\mathrm{.}750\mathrm{.}000055$

$2.$ McCourt estimates that November will now have $350$ moves. Using this new value, calculate the following expected total, fixed and variable costs for the month of November $($round all costs to the nearest dollar$)$:

Expected fixed cost $fill in the blank $641$e$26$fbbfeff$82\_6$

Expected variable cost fill in the blank $641$e$26$fbbfeff$82\_7$

Total cost $fill in the blank $641$e$26$fbbfeff$82\_8$

$3.$ What is the percentage of material handing cost explained by moves:

fill in the blank $641$e$26$fbbfeff$82\_9$ percent

$4.$ Using a P$-$value of $0\mathrm{.}10$ for significance, the following is true:

$5.$ Using a P$-$value of $0\mathrm{.}05$ for significance, the following is true: