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Part 2: Cameron Company is interested in establishing the relationship between utility costs and machine hours. Data has been collected and a regression analysis prepared
Part 2: Cameron Company is interested in establishing the relationship between utility costs and machine hours. Data has been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month January February March April May June July August September October November December Machine Hours 3,250 3,770 2.470 4,030 4,940 4,290 5,330 4,550 2,600 4,810 6,110 5,460 Electricity Costs 22.080 25.2001 16,200 27.600 33.900 26,400 29,700 27,300 18,600 31.2001 37,200 33,300 Required: a. Using Excel, perform a regression analysis on the above data and generate a summary output. (Follow the instructions in your text book on pages 197-202). b. What is the equation for utility costs using the regression analysis? c. Prepare an estimate of utility costs for a month when 3,000 machine hours are worked
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