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Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel.
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow Electricity Costs $18,800 21,800 $13,900 $23,800 $28,650 $22,800 $ 25,150 $ 23150 $16,300 $26,800 31,800 $ 28150 Machine Hours January February March April 3,300 3,700 2,700 3,900 5,200 4,100 5,100 August September 2,800 4,500 6,200 5,700 November December Summary Output Multiple R R Square Adjusted R2 Standard Error Observations 957 916 908 1,584.49 12.00 Upper 95% 8,25701 Standard Error t Stat P-value Lower 95% (259.71) 3.56 3,998.65 1,911.17 0.43 Intercept 2.09 0.06 Machine Hours 4.53 10.47 0.00 Based on the results of the high-low analysis, the estimate of electricity costs in a month with 3,000 machine hours would be: (Round "Per unit" answer to 2 decimal places and all dollar amount to nearest whole dollar.) O $17,578 O $21,069 O $15,538 $15,448
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