The following information on maintenance and repair costs and revenues for the l
ID: 3072935 • Letter: T
Question
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.
Month
Maintenance and Repair Cost ($000)
Revenues ($000)
July
$2.31
$59.00
August
3.28
53.00
September
2.80
49.00
October
2.21
65.00
November
2.30
77.00
December
1.14
105.00
January
3.12
45.00
February
3.16
51.00
March
3.02
61.00
April
2.98
63.00
May
2.04
67.00
June
1.78
79.00
July
2.60
73.00
August
2.02
67.00
September
2.57
75.00
October
2.38
77.00
November
1.43
87.00
December
0.76
117.00
January
2.58
61.00
February
2.28
63.00
March
1.69
83.00
April
1.95
87.00
May
1.95
73.00
June
1.33
69.00
Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R square and Standard Error" to 7 decimal places, Intercept and Revenues to 4 decimal places.)
Regression Statistics
Multiple R: 0.8436280
R Square: 0.7117080
Standard Error:
Observations: 24
Coefficients
Intercept:
Revenues:
Month
Maintenance and Repair Cost ($000)
Revenues ($000)
July
$2.31
$59.00
August
3.28
53.00
September
2.80
49.00
October
2.21
65.00
November
2.30
77.00
December
1.14
105.00
January
3.12
45.00
February
3.16
51.00
March
3.02
61.00
April
2.98
63.00
May
2.04
67.00
June
1.78
79.00
July
2.60
73.00
August
2.02
67.00
September
2.57
75.00
October
2.38
77.00
November
1.43
87.00
December
0.76
117.00
January
2.58
61.00
February
2.28
63.00
March
1.69
83.00
April
1.95
87.00
May
1.95
73.00
June
1.33
69.00
Explanation / Answer
Hello Sir/ Mam
Your required regression analysis :
Original Excel Output :
I hope this solves your doubt.
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Regression Statistics Multiple R 0.8436276 R Square 0.7117075 Standard Error 0.3658095 Observations 24 Coefficients Intercept 4.6107 Revenue -0.0334Related Questions
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