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 & Repair cost | Revenues |
July | $1.96 | $52.00 |
August | 2.93 | 46.00 |
September | 2.45 | 42.00 |
October | 1.86 | 58.00 |
November | 1.95 | 70.00 |
December | 0.79 | 98.00 |
January | 2.77 | 38.00 |
February | 2.81 | 44.00 |
March | 2.67 | 54.00 |
April | 2.63 | 56.00 |
May | 1.69 | 60.00 |
June | 1.43 | 72.00 |
July | 2.25 | 66.00 |
August | 1.67 | 60.00 |
September | 2.22 | 68.00 |
October | 2.03 | 70.00 |
November | 1.08 | 80.00 |
December | 0.41 | 110.00 |
January | 2.23 | 54.00 |
February | 1.93 | 56.00 |
March | 1.34 | 76.00 |
April | 1.60 | 80.00 |
May | 1.60 | 66.00 |
June | 1.54 | 62.00 |
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started