Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.)

Regression Statistics
Multiple R
R Square
Standard Error
Observations
Coefficients
Intercept
Revenues

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Accounting questions

Question

When is it appropriate to show grace toward others?

Answered: 1 week ago