STEFEN GHATAS

Question $6$ of $24$

This test: $100$ point$($s$)$ possible

This question: $4$ point$($s$)$ possible

The manager of the main laboratory facility at Citilealth Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed.

After running a regression analysis on the first seven months of the year, the manager of the main laboratory facility at CitiHealth Center collects seven additional months of data. The numbe of tests performed and the total monthly overhead costs for the lab follow:

$($Click the icon to view the data.$)$

Read the requirements.

Requirements $1$ and $2.$ Use Excel to run a regression analysis using data for August through February and determine using Excel$).($Enter all dollar amounts to two decimal places.$)$

$y=$

Requirement $3.$ Determine the R$-$squared using the Excel output you obtain. What does the lab's R$-$squared indicate?

The R$-$squared is $$

What does the lab's R$-$squared indicate?

The R$-$squared indicates that the cost equation explains $$ of the variability in the data. In other words, it $$ equation to predict total costs at other volumes within the same relevant range.

Requirement $4.$ Predict the lab's total overhead costs for the month if $3,200$ tests are performed. $($Round your answer

The total laboratory overhead at a volume of $3,200$ lab tests is $$

Regression analysis

$\backslash$table$[[$Month$,\backslash$table$[[$Number of Lab$],[$Tests Performed$]],\backslash$table$[[$Total Laboratory$],[$Overhead$]],],[$August dotsdots,$3,600,$$$,25,600],[$September dots..,$3,950,$$$,27,700],[$October dotsdots,$4,600,$$$,29,450],[$November dots..,$4,250,$$$,28,100],[$December dots..,$4,300,$$$,29,000],[$January dotsdots,$2,$dots$200,$$$,20,400],[$February dotsdots,$3,100,$$$,22,050]]$