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Category > Accounting Posted 24 Apr 2017 My Price 2.00

Regression Analysis

8-42  to 8-46 Regression Analysis Problems 8-42 through 8-46 are based on Armer Company, which is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the mainte- nance hours and costs for the last year and the results of the regression analysis follow:

 

 

 

January

Hours of Activity

480

Maintenance  Costs

$ 4,200

February

320

3,000

March

400

3,600

April

300

2,820

May

500

4,350

June

310

2,960

July

320

3,030

August

520

4,470

September

490

4,260

October

470

4,050

November

350

3,300

December

  340

   3,160

Total

4,800

$43,200

Average

400

3,600

Average cost per hour ($43,200/4,800) = $9.00

a (intercept)

 

684.65

b coefficient

7.2884

Standard error of the estimate

34.469

R-squared

.99724

t-value for b

60.105

 

 

Answers

(8)
Status NEW Posted 24 Apr 2017 06:04 AM My Price 2.00

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file 1493014176-Answer.docx preview (143 words )
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