Using the data provided in E6-50B, the laboratory manager performed a regression analysis to predict total laboratory overhead costs. The output generated by Excel is as follows:

Requirements
1. Determine the lab's cost equation (use the output from the Excel regression).
2. Determine the R-square (use the output from the Excel regression).
3. Predict the total laboratory overhead for the month if 2,700 tests are performed.

Transcribed Image Text:

SUMMARY OUTPUT Regression Statistics 3 Multiple R 4 R Square 5 Adjusted R Square 6 Standard Error 7 Observations 8 ANOVA 0.779237 0.60721 0.528651 2067.910396 df MS Significance F SS 33053018.68 33053018.68 5 21381267.03 4276253.406 6 54434285.71 9. 10 Regression 11 Residual 12 Total 7.729434 0.038894 13 Standard Error Lower 95% Upper 95% 14 t Stat Coefficients 12412.72 P-value 15 16 Intercept 17 X Variable 1 4548.903 2.729 0.041 -719.391 24106.041 7.204 0.282 3.74 1.346 2.780 0.039 18