Q. The following excel printout provides information to estate overhead costs using linear regression: Coefficients Standard error t Stat P-value Lower 95% Upper 95% Intercept 6035.987027 1411.05464 4.277642 0.002696 2782.0871 9289.88697 DLH 4.558482698 1.609683731 2.831912 0.022085 0.846543 8.27042244 # setup 771.1028938 54.93418317 14.03685 6.44E-07 644.42436 897.781429 # moves 29.9411124 2.874675342 10.41548 6.26E-06 23.312095 36.5701299 Regression Multiple R 0.996584412 R Square 0.993118049 Adjusted R Square 0.990623174 Standard Error 347.9563597 Observations 12 Required: a) Write the multiple regression model (round to nearest cent) b) What does the ?t? Stat measure? c) What is the estimate of overhead if the department has 1,205 DLH, 55 setups and 125 moves?

Q. The following excel printout provides information to estate overhead costs using linear regression: Coefficients Upper 95% Intercept 6035.987027 9289.88697 DLH 4.558482698 8.27042244 # setup 771.1028938 897.781429 # moves 29.9411124 36.5701299 Standard error 1411.05464 1.609683731 54.93418317 2.874675342 t Stat 4.277642 2.831912 14.03685 10.41548 P-value 0.002696 0.022085 6.44E-07 6.26E-06 Lower 95% 2782.0871 0.846543 644.42436 23.312095 Regression Multiple R R Square 0.996584412 0.993118049 Adjusted R Square 0.990623174 Standard Error 347.9563597 Observations 12 Required: a) Write the multiple regression model (round to nearest cent) b) What does the 't' Stat measure? c) What is the estimate of overhead if the department has 1,205 DLH, 55 setups and 125 moves? Q. The following excel printout provides information to estate overhead costs using linear regression: Coefficients Upper 95% Intercept 6035.987027 9289.88697 DLH 4.558482698 8.27042244 # setup 771.1028938 897.781429 # moves 29.9411124 36.5701299 Standard error 1411.05464 1.609683731 54.93418317 2.874675342 t Stat 4.277642 2.831912 14.03685 10.41548 P-value 0.002696 0.022085 6.44E-07 6.26E-06 Lower 95% 2782.0871 0.846543 644.42436 23.312095 Regression Multiple R R Square 0.996584412 0.993118049 Adjusted R Square 0.990623174 Standard Error 347.9563597 Observations 12 Required: a) Write the multiple regression model (round to nearest cent) Overhead costs = 6035.99 + 4.56*DLH + 771.10*Setup + 29.94* moves b) What does the 't' Stat measure? It is in the t-stat column for all the variables. It provides the information whether or not a variable is significant or not. DLH: 2.831912 Setup: 14.03685 Moves: 10.41548 c) What is the estimate of overhead if the department has 1,205 DLH, 55 setups and 125 moves? Overhead costs = 6035.99 + 4.56*DLH + 771.10*Setup + 29.94* moves = 57683.79