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Question 1: THE DIRECT LABOR COST CASE [ID points] An accountant wishes to predict direct labor cost (3: in hundreds of dollar (5.10%)) on the

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Question 1: THE DIRECT LABOR COST CASE [ID points] An accountant wishes to predict direct labor cost (3: in hundreds of dollar (5.10%)) on the basis of the batch size (it) of a product produced in a job shop. Partial Excel Output of the regression is provided below in Figure 1. Calculate and answer the following question. Use the 5-point method of testing hypothesis. Direct answers without following protocols would result in an award of 0' points. SHOW YOUR WORK. 3) b) c) Find the least squares point estimates be and 321 ofu and ,3; on the output and report their values. Find the explained variation, the unexplained variation (SSE)= the total variation, r2, and .5! through the partial computer output and report their values. Find 3"- and the I statistic for testing the signicance of the slope on the output and report their values. Show (within rounding) how r has been calculated by using 51 and 5"- from the computer output. Using the I statistic and an appropriate critical value, test Ha: J.61=Cl versus Hg: {31% 0 by setting 0. equal to .05. Is the slope (regression relationship] signicant at the .05 level? Calculate the 95 percent condence interval for 1 using numbers on the output. Interpret the interval. Using partial computer output, hand calculate (within rounding) SSH Use the explained variation and the unexplained variation as given on the computer output to calculate (within rounding) the F (model) statistic. Utilize the F (model) statistic and the appropriate critical value to test Ho: l = 0 versus Hg: ,3; i 0 by setting a equal to .66. What do you conclude about the regression relationship between y and x? Formulate treudline equation using the partial excel output and thereafter obtain point estimate of direct labor cost for all batches of size 59. Write your answer in a contextual statement

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