Question
Month Units produced Manuf. Overhead 1 500 131,000 2 600 135,000 3 400 104,000 4 300 76,000 5 800 186,000 6 900 190,100 7 600
Month | Units produced | Manuf. Overhead |
1 | 500 | 131,000 |
2 | 600 | 135,000 |
3 | 400 | 104,000 |
4 | 300 | 76,000 |
5 | 800 | 186,000 |
6 | 900 | 190,100 |
7 | 600 | 150,000 |
8 | 400 | 98,000 |
9 | 300 | 78,000 |
10 | 200 | 60,000 |
11 | 400 | 108,000 |
12 | 600 | 152,000 |
13 | 700 | 158,000 |
14 | 500 | 134,380 |
15 | 300 | 86,000 |
16 | 200 | 60,000 |
Given the following information, use Excels Regression tool and scatter plot tool to:
- What is the estimated overhead if 1,000 units are produced?
- What is the 95% prediction interval for the true overhead when the number of units produced is 1,000?
- What is the residual for the fifth observation (round to two decimal places)?
(Note: To use the Regression tool, you need to install the add-in Analysis Toolpak. Click file>click options>click add-ins>highlight Analysis Toolpak>click go>in the box that opens, check Analysis Toolpak>click ok. To access the Regression tool, click Data tab>click Data analysis>highlight Regression>click ok. For Apple computers, click on tools first and then click on add-ins.)
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