requirement 3

The manager of the main laboratory facility at Citi Health Center is The laboratory manager performed a regression analysis to predict total interested in being able to predict the overhead costs each month for the laboratory overhead costs. The output generated by Excel is as follows: lab. The manager believes that total overhead varies with the number of (Click the icon to view the completed regression analysis.) lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. Read the requirements Click the icon to view the data.) Requirement 1. Determine the lab's cost equation (use the output from the Excel regression). (Round the amounts to two decimal places.) y= $ 6.21 x+ $ 5,627.61 Requirement 2. Determine the R-squared (use the output from the Excel regression) The R-squared is 0.70373 What does Cit Health's R-squared indicate? The R-squared indicates that the cost equation explains 70.4% of the variability in the data. In other words, it should be used with caution. Citi Health may or may not feel confident using this cost equation to predict total costs at other volumes within the same relevant range. Requirement 3. Predict the total laboratory overhead for the month if 2,700 tests are performed. (Round your answer to the nearest cent.) The total laboratory overhead at a volume of 2,700 lab tests is