Custom Photography is a small company that provides photography services primarily for medium to large size local businesses. Most of the work is special assignments involving professional models, displays, and sets. At the end of 2010, Janice Glass, the owner of Custom Photography is interested in predicting the average hourly payroll cost of the professional models and others who work in the setup and design of the photo sessions in 2011. In order to do this, she has taken the payroll costs for each of the prior 20 quarters and the approximate number of hours devoted to these photo sessions during the quarter. The independent variable in this application is the number of hours for the sessions and the dependent variable is the payroll expense. QUIYR Hours Payroll Expense 12006 145 5,122 2 90 3,011 3 25 1,203 4 175 5,188 12007 112 3,877 2 267 8,712 3 212 7,355 4 132 4,123 1/2008 289 9,938 2 235 7,327 3 156 5,592 4 277 9,387 1/2009 302 10,993 2 72 2,761 3 88 2,766 4 212 8,246 1/2010 155 5,499 2 222 7,729 3 116 3,892 4 250 8,473 Projected Data for hours: 1/2011 188 ? 2 233 ? 3 145 ? 4 298 ? REQUIRED: 1. Develop a regression analysis to predict payroll costs, using Excel or equivalent regression software and the first 20 quarters of data. Evaluate the precision and reliability of the regression. 2. Predict payroll expense for each quarter of 2011