Question
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnies Arcade &
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnies Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.
Month | Maintenance and Repair Cost ($000) | Revenues ($000) |
July | $2.31 | $59.00 |
August | 3.28 | 53.00 |
September | 2.80 | 49.00 |
October | 2.21 | 65.00 |
November | 2.30 | 77.00 |
December | 1.14 | 105.00 |
January | 3.12 | 45.00 |
February | 3.16 | 51.00 |
March | 3.02 | 61.00 |
April | 2.98 | 63.00 |
May | 2.04 | 67.00 |
June | 1.78 | 79.00 |
July | 2.60 | 73.00 |
August | 2.02 | 67.00 |
September | 2.57 | 75.00 |
October | 2.38 | 77.00 |
November | 1.43 | 87.00 |
December | 0.76 | 117.00 |
January | 2.58 | 61.00 |
February | 2.28 | 63.00 |
March | 1.69 | 83.00 |
April | 1.95 | 87.00 |
May | 1.95 | 73.00 |
June | 1.33 | 69.00 |
Required:
Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R square and Standard Error" to 7 decimal places, Intercept and Revenues to 4 decimal places.)
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