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Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel.
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow: Month January February March April May June July August September October November December Machine Hours 2,500 2,900 1,900 3,100 3,800 3,300 4,100 3,500 2,000 3,700 4,700 4,200 Electricity Costs $19, 200 $22,600 $14,300 $24,600 $29,050 $23,600 $25,550 $23,550 $17,100 $27,600 $32,600 $28,550 Summary Output Regression Statistics Multiple R 0.956 R Square 0.914 Adjusted R2 0.905 Standard Error 1,615.39 Observations 12.00 Intercept | Machine Hours Coefficients Standard Errort Stat P-value Lower 95% Upper 95% 4,974.43 1,907.43 | 2.61 | 0.03 724.41 | 9,224.45 I 5.76 | 0.56 I 10.30 0.00 / 4.51 7.00 The correlation coefficient for the regression equation for electricity costs is: Multiple Choice 0.964. 0.905. 0.914. 0.956
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