DAIA Cell Insert Delete Cet M N REVIEW VIEW Xcut Calibri 12 A A 2 Pa Copy Wrap Text General Paste Format Painter BTU- A E Merge Center $ - % *89 Conditional Format as Clipboard Formatting Table - Styles Font Alignment Number Styles A1 Cost Behavior A B D E F G H 1 Cost Behavior 2 Performing a regression analysis to predict overhead for a hospital laboratory 3 The manager of the main laboratory facility at Elmhurst Health Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The manager of the main laboratory facility at Elmhurst Health Center collected the following seven months of data. The number of tests performed and the total monthly overhead costs for the lab 4 follow: 5 Number of Lab Total 6 Month Tests Laboratory 7 August 3,350 s 23,50C September 3,700 $ 27,550 9 October 3,650 $ 24,500 10 November 3,450 $ 26,400 December 4,200 $ 28,500 12 January 2,500 s 22,800 13 February 3,800 $ 25,350 8 14 15 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you 16 copy/paste from the Instruction tab you will be marked wrong. INSTRUCTIONS ENTERANSWERS READY TOSHIBA B E F G H 1 K 9 10 D 3,650 3,450 4,200 2,500 3,800 October November December January February 11 $ $ $ $ $ 24,500 26,400 28,500 22,800 25,350 12 13 14 15 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you 16 copy/paste from the Instruction tab you will be marked wrong. 17 18 Requirements 1 Run a regression analysis using data for August through February. Determine the lab's cost equation (use the 19 output from the regression analysis you performed using Excel). 20 a. Rename the regression output tab name "REGRESSION". 21 2 Determine the R-square using the Excel output you obtain. 22 3 Predict the lab's total overhead costs for the month if 3,500 tests are performed. a. Reference values calculated in previous requirements as needed. 24 25 Saving & Submitting Solution 26 1 Save file to desktop. 27 a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. 23 28 INSTRUCTIONS ENTERANSWERS READY
