The manager of the main laboratory facility at Elmhurst Health Center (from E6-29A) collects seven additional months of data after obtaining the regression results in E6-31A. The number of tests performed and the total monthly overhead costs for the lab follow:

Use Excel to do the following:
Requirements
1. Run a regression analysis using data for August through February.
2. Determine the lab's cost equation (use the output from the regression analysis you performed using Excel).
3. Determine the R-square using the Excel output you obtain. What does the lab's R-square indicate?
4. Predict the lab's total overhead costs for the month if 3,500 tests are performed.

Transcribed Image Text:

Number of Lab Tests Total Laboratory Overhead Costs Month Performed 3,350 3,700 $23,500 $27,550 $24,500 August... September.. October.... 3,650 3,450 4,200 2,500 3,800 November December.. $26,400 $28,500 $22,800 $25,350 January. February .