Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide Excel Spreadsheet along with the answer to the following: Multiple Regression Analysis for a Special Decision (Requires Computer Spreadsheet) For billing purposes, South

Please provide Excel Spreadsheet along with the answer to the following:

Multiple Regression Analysis for a Special Decision (Requires Computer Spreadsheet) For billing purposes, South Town Health Clinic classifies its services into one of four major procedures, X1 through X4. A local business has proposed that South Town provide health services to its employees and their families at the following set rates per procedure: X1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45 X2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 X3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 X4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Because these rates are significantly below the current rates charged for these services, management has asked for detailed cost information on each procedure. The following information is available for the most recent 12 months. Number of Procedures Mont Total cost X1 X2 X3 X4 1 . . . . . . . . . . . . . $23,000 30 100 205 75 2 . . . . . . . . . . . . . 25,000 38 120 180 90 3 . . . . . . . . . . . . . 27,000 50 80 140 150 4 . . . . . . . . . . . . . 19,000 20 90 120 100 5 . . . . . . . . . . . . . 20,000 67 50 160 80 6 . . . . . . . . . . . . . 27,000 90 75 210 105 7 . . . . . . . . . . . . . 25,500 20 110 190 110 8 . . . . . . . . . . . . . 21,500 15 120 175 80 9 . . . . . . . . . . . . . 26,000 60 85 125 140 10 . . . . . . . . . . . . 22,000 20 90 100 140 11 . . . . . . . . . . . . . 22,800 20 70 150 130 12 . . . . . . . . . . . . . 26,500 72 60 200 120 Required a. Use multiple regression analysis to determine the unit cost of each procedure. How much variation in monthly cost is explained by your cost-estimating equation? b. Evaluate the rates proposed by the local business. Assuming South Town has excess capacity and no employees of the local business currently patronize the clinic, what are your recommendations regarding the proposal? c. Evaluate the rates proposed by the local business. Assuming South Town is operating at capacity and would have to turn current customers away if it agrees to provide health services to the local business, what are your recommendations regarding the proposal?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management for Public, Health and Not-for-Profit Organizations

Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell

5th edition

1506326846, 9781506326863, 1506326862, 978-1506326849

More Books

Students also viewed these Finance questions