In the computations below, use intercepts rounded to the nearest whole number and use X variable coefficients rounded to 2 decimal places. 1. Using the high-low method, calculate the variable rate per hour and the fixed cost for the nursing care activity. Enter negative answers with a minus sign. Y = $ + $ x 2. Run a regression on the data, using hours of nursing care as the independent variable. Predict cost for the cardiac nursing care for September Year 2 if 1,400 hours of nursing care are forecast. If required, round your answer to the nearest dollar.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
High-Low Method,
Weber Valley Regional Hospital has collected data on all of its activities for the past 16 months. Data for cardiac nursing care follow:
| Y Cost |
X Hours of Nursing Care |
||||
| May Year 1 | $59,600 | 1,400 | |||
| June Year 1 | 57,150 | 1,350 | |||
| July Year 1 | 61,110 | 1,460 | |||
| August Year 1 | 65,800 | 1,600 | |||
| September Year 1 | 69,500 | 1,700 | |||
| October Year 1 | 64,250 | 1,550 | |||
| November Year 1 | 52,000 | 1,200 | |||
| December Year 1 | 66,000 | 1,600 | |||
| January Year 2 | 83,000 | 1,800 | |||
| February Year 2 | 66,550 | 1,330 | |||
| March Year 2 | 79,500 | 1,700 | |||
| April Year 2 | 76,000 | 1,600 | |||
| May Year 2 | 68,500 | 1,400 | |||
| June Year 2 | 73,150 | 1,550 | |||
| July Year 2 | 73,175 | 1,505 | |||
| August Year 2 | 66,150 | 1,290 |
Required:
In the computations below, use intercepts rounded to the nearest whole number and use X variable coefficients rounded to 2 decimal places.
1. Using the high-low method, calculate the variable rate per hour and the fixed cost for the nursing care activity. Enter negative answers with a minus sign.
| Y | = | $ | + | $ x |
2. Run a regression on the data, using hours of nursing care as the independent variable. Predict cost for the cardiac nursing care for September Year 2 if 1,400 hours of nursing care are forecast. If required, round your answer to the nearest dollar.
Y = $
3. Upon looking into the
Y = $
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
