The following information on maintenance and repair costs and revenues for the l
ID: 3174789 • 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.
Required:
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.)
please fill in the blank
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 69.00Explanation / Answer
running regression on above data from excel
SUMMARY OUTPUT Regression Statistics Multiple R 0.843628 R Square 0.711708 Adjusted R Square 0.698603 Standard Error 9.24039 Observations 24 ANOVA df SS MS F Significance F Regression 1 4637.368 4637.368 54.3114 2.24E-07 Residual 22 1878.466 85.3848 Total 23 6515.833 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 118.747 6.737009 17.62607 1.84E-14 104.7753 132.7187 104.7753 132.7187 Maintenance and Repair Cost ($000) -21.3101 2.891616 -7.36963 2.24E-07 -27.307 -15.3133 -27.307 -15.3133Related Questions
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