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 | $2.56 | $64.00 |
August | 3.53 | 58.00 |
September | 3.05 | 54.00 |
October | 2.46 | 70.00 |
November | 2.55 | 82.00 |
December | 1.39 | 110.00 |
January | 3.37 | 50.00 |
February | 3.41 | 56.00 |
March | 3.27 | 66.00 |
April | 3.23 | 68.00 |
May | 2.29 | 72.00 |
June | 2.03 | 84.00 |
July | 2.85 | 78.00 |
August | 2.27 | 72.00 |
September | 2.82 | 80.00 |
October | 2.63 | 82.00 |
November | 1.68 | 92.00 |
December | 1.01 | 122.00 |
January | 2.83 | 66.00 |
February | 2.53 | 68.00 |
March | 1.94 | 88.00 |
April | 2.20 | 92.00 |
May | 2.20 | 78.00 |
June | 1.18 | 74.00 |
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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