Question
Regression analysis of the data given in Question 4 (part 1) produced the following output: SUMMARY OUTPUT Regression Statistics Multiple R 0.705591269 R Square 0.497859039
Regression analysis of the data given in Question 4 (part 1) produced the following output:
| SUMMARY OUTPUT | ||||
| Regression Statistics | ||||
| Multiple R | 0.705591269 | |||
| R Square | 0.497859039 | |||
| Adjusted R Square | 0.447644943 | |||
| Standard Error | 197087.9555 | |||
| Observations | 12 | |||
| ANOVA | ||||
| , | df | SS | MS | F |
| Regression | 1 | 3.85124E+11 | 3.85E+11 | 9.914727 |
| Residual | 10 | 3.88437E+11 | 3.88E+10 | |
| Total | 11 | 7.73561E+11 | , | , |
| , | Coefficients | Standard Error | t Stat | P-value |
| Intercept | 30380.8769 | 368988.5767 | -0.08234 | 0.936005 |
| X Variable 1 | 1.46970772 | 0.466756746 | 3.148766 | 0.010355 |
(c) Write the total cost formula based on the above summary output.
(1 mark)
(d) Would you recommend that the company use the regression formula in (c) for estimating the total overhead cost? Why, or why not?
(3 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
9781119563099
