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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:

  1. What is the estimated overhead if 1,000 units are produced?
  2. What is the 95% prediction interval for the true overhead when the number of units produced is 1,000?
  3. 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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