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 | $1.86 | $50.00 |
August | 2.83 | 44.00 |
September | 2.35 | 40.00 |
October | 1.76 | 56.00 |
November | 1.85 | 68.00 |
December | 0.69 | 96.00 |
January | 2.67 | 36.00 |
February | 2.71 | 42.00 |
March | 2.57 | 52.00 |
April | 2.53 | 54.00 |
May | 1.59 | 58.00 |
June | 1.33 | 70.00 |
July | 2.15 | 64.00 |
August | 1.57 | 58.00 |
September | 2.12 | 66.00 |
October | 1.93 | 68.00 |
November | 0.98 | 78.00 |
December | 0.31 | 108.00 |
January | 2.13 | 52.00 |
February | 1.83 | 54.00 |
March | 1.24 | 74.00 |
April | 1.50 | 78.00 |
May | 1.50 | 64.00 |
June | 1.60 | 60.00 |
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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