The manager of the main laboratory facility at CitiHealth Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. $($Click the icon to view the data.$)$ Requirement $1.$ Determine the lab's cost equation $($use the output from the Excel regression$).($Round the amounts to th y$=$ x$+/$r$/$n The manager of the main laboratory facility a overhead costs each month for the lab. The lab tests performed but that some costs rem: performed. The lab manager collected the fo $($Click the icon to view the data.$)$Requirement $1.$ Determine the lab's cost eq y$=$ x$+/$r$/$n The manager of the main laboratory facility at CitiHealth Ce overhead costs each month for the lab. The manager belie Data Table lab tests performed but that some costs remain the same e performed. The lab manager collected the following data fo $($Click the icon to view the data.$)$Requirement $1.$ Determine the lab's cost equation $($use the y$=$x$+$ Enter any number in the edit fields and then click Check $/$r$/$n The manager of the main laboratory facility at CitiHealth Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of The laboratory manager performed a regression analysis to predict total laboratory overhead costs. The lab tests performed but that some costs remain the same each month regardless of the number of lab tests output generated by Excel is as follows: performed. The lab manager collected the following data for the first seven months of the year. $($Click the icon to view the completed regression analysis.$)($Click the icon to view the data.$)$ Read the I Requirement $1.$ Determine the lab's cost equation $($use the y$=$x$+1.$ Determine the lab's cost equation $($use the output from the Excel regression$).2.$ Determine the R$-$squared $($use the output from the Excel regression$).3.$ Predict the total laboratory overhead for the month if $2,900$ tests are performed.

The manager of the main laboratory facility at CitiHealth Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed

After running a regression analysis on the first seven months of the year, the manager of the main laboratory facility at CitiHealth Center collects seven additional months of data. The number of tests performed and the total monthly overhead costs for the lab follow:

$($Click the icon to view the data.$)$

Read the requirements

Requirements $1$ and $2.$ Use Excel to run a regression analysis using data for August through February and determine using Excel$)($Enter all dollar amounts to two decimal places.$)$

$y=$

$$

$$

Requirement $3.$ Determine the R$-$squared using the Excel output you obtain. What does the lab's R$-$squared indicate?

The R$-$squared is $$

What does the lab's R$-$squared indicate?

The R$-$squared indicates that the cost equation explains $$ of the variability in the data. In other words, it $$ equation to predict total costs at other volumes within the same relevant range

Requirement $4.$ Predict the lab's total overhead costs for the month if $3,200$ tests are performed. $($Round your answer

Regression analysis

$\backslash$table$[[$Month$,\backslash$table$[[$Number of Lab$],[$Tests Performed$]],\backslash$table$[[$Total Laboratory$],[$Overhead$]],],[$August dotsdots,$3,600,$$$,25,600],[$September dots..,$3,950,$$$,27,700],[$October dotsdots,$4,600,$$$,29,450],[$November dotsdots,$4,250,$$$,28,100],[$December dotsdots,$4,300,$$$,29,000],[$January dotsdots,$2,200,$$$,20,400],[$February dotsdots,$3,100,$$$,22,050]]$

The total laboratory overhead at a volume of $3,200$ lab tests is $$

$$

$$

Next

Regression analysis

$\backslash$table$[[$Month$,\backslash$table$[[$Number of Lab$],[$Tests Performed$]],\backslash$table$[[$Total Laboratory$],[$Overhead$]]],[$August$,3,600,$$$,25,600],[$September$,3,950,$$$,27,700],[$October$,4,600,$$$,29,450],[$November$,4,250,$$$,28,100],[$December$,4,300,$$$,29,000],[$January$,2,200,$$$,20,400],[$February$,3,100,$$$,22,050]]$

Regression analysis

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