The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form olyabx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted 3 January February March April May June July August September October November December Sum Average Hours of Activity 482 322 402 302 502 312 322 522 492 472 352 342 4,824 402 Maintenance Costs $ 4,220 3.020 3.620 2,840 4.370 2.980 3.050 4,490 4,280 4,070 3,320 3,180 $ 43, 440 3,620 A coefficient 690.08 -octono.com/secured obckdown. 2 User Portal Connect Class Co O GRL Content Electronic Ibrary.o. Watch TV Online, Mail - Jordan Steri Peartonnn - Youd Account 44,5,6 Sved Help Save Subm March April May June July August September October November December Sum Average 402 302 502 312 322 522 492 472 352 342 4,024 402 3,620 2,840 4.370 2.980 3.050 4.490 4.280 4.070 3,320 3,180 $ 43, 440 3,620 690.00 7.2884 49.752 0.12126 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value T-value 34.469 0.99724 13.870 60.105 Based upon the data derived from the regression analysis, 425 maintenance hours in a month would mean the maintenance costs would be budgeted at: frounded to the nearest whole dollar) The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form olyabx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted 3 January February March April May June July August September October November December Sum Average Hours of Activity 482 322 402 302 502 312 322 522 492 472 352 342 4,824 402 Maintenance Costs $ 4,220 3.020 3.620 2,840 4.370 2.980 3.050 4,490 4,280 4,070 3,320 3,180 $ 43, 440 3,620 A coefficient 690.08 -octono.com/secured obckdown. 2 User Portal Connect Class Co O GRL Content Electronic Ibrary.o. Watch TV Online, Mail - Jordan Steri Peartonnn - Youd Account 44,5,6 Sved Help Save Subm March April May June July August September October November December Sum Average 402 302 502 312 322 522 492 472 352 342 4,024 402 3,620 2,840 4.370 2.980 3.050 4.490 4.280 4.070 3,320 3,180 $ 43, 440 3,620 690.00 7.2884 49.752 0.12126 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value T-value 34.469 0.99724 13.870 60.105 Based upon the data derived from the regression analysis, 425 maintenance hours in a month would mean the maintenance costs would be budgeted at: frounded to the nearest whole dollar)
