The percent of the total variance that can be explained by the regression equation is Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behaviorpattern of the maintenance costs must be determined. The accounting staff has suggested the use of linearregression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costsfor the last year and the results of the regression analysis follow:MaintenanceMachineMonthCostHoursJan.$ 4,200480Feb.3,000320Mar.3,600400Apr.2,820300Мay4,350500June2,960310July3,030320Aug.4,470520Sept.4,260490Oct.4,050470Nov.3,300350Dec.3,160340Sum$43,2004,800Average$ 3,600$400Average cost per hour$9.00a (intercept)$ 684.65b (coefficient)7.2884Standard error of the estimate34.469R-squared0.99724t-value for b60.105

Given information: a=684.65b=7.2884r2=0.99724

Answered: The percent of the total variance that…

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The percent of the total variance that can be explained by the regression equation is

MATLAB: An Introduction with Applications

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Concept explainers

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.

Question

The percent of the total variance that can be explained by the regression equation is

Armer Company 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 maintenance hours and costs
for the last year and the results of the regression analysis follow:
Maintenance
Machine
Month
Cost
Hours
Jan.
$ 4,200
480
Feb.
3,000
320
Mar.
3,600
400
Apr.
2,820
300
Мay
4,350
500
June
2,960
310
July
3,030
320
Aug.
4,470
520
Sept.
4,260
490
Oct.
4,050
470
Nov.
3,300
350
Dec.
3,160
340
Sum
$43,200
4,800
Average
$ 3,600
$
400
Average cost per hour
$
9.00
a (intercept)
$ 684.65
b (coefficient)
7.2884
Standard error of the estimate
34.469
R-squared
0.99724
t-value for b
60.105

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