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- Does Table 2 represent a linear function? If so, finda linear equation that models the data.arrow_forwardMidgett Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff suggested that linear regression be employed 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 are as follows: Month MaintenanceCost Machine Hours Jan. $ 5,040 620 Feb. 3,648 420 Mar. 4,320 520 Apr. 3,331 390 May 5,221 650 June 3,550 400 July 3,655 430 Aug. 5,365 690 Sept. 5,110 640 Oct. 4,866 610 Nov. 3,944 460 Dec. 3,790 440 Sum $ 51,840 6,270 Average $ 4,320.00 522.50 Average cost per hour ($51,840/6,270) = $8.27 (rounded to the nearest cent)r = 0.99821r2 = 0.99780The percent of the total variance that can be…arrow_forwardThe managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through o. Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs OxBillable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Monthly Overhead Costs and Billable Hours Data Overhead Costs $385,000 Billable Hours 3,000 $425,000 4,000 $445.000 5,000 $497,000 6,000 $570,000 7,000 $590,000 8,000arrow_forward
- The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. E Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs = 5304.4 + (0.0219) × Billable Hours +1 (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Monthly overhead costs and billable hours data Overhead Costs Billable Hours O IT $385,000 3,000 $430,000 4,000 $460,000 5,000 $511,000 6,000 $580,000 7,000 $600,000 8,000 Print Donearrow_forwardMark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for their particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 10 years and was reduced to the data that follow: YEAR SALES/UNIT (THOUSANDS) PRICE $/UNIT ADVERTISING ($000) 1998 395 278 605 1999 695 219 831 2000 895 216 1,104 2001 1,286 207 1,404 2002 1,147 219 1,203 2003 1,180 193 1,286 2004 895 222 884 2005 1,104 202 1,104 2006 974 220 696 2007 1,238 216 884 2008 884 220 696 2009 804 247 696arrow_forwardMark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow: YEAR 123456789 10 11 12 UNIT SALES (THOUSANDS) 396 696 896 1,285 1,155 1,186 896 1,118 985 1,334 926 820 PRICE $/UNIT 282 219 206 210 219 209 218 206 220 206 226 236 ADVERTISING ($000) 600 829 1,118 1,413 1,214 1,285 907 1,118 708 907 708 682 a. Perform a regression analysis based on these data using Excel. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.)arrow_forward
- The quadratic model for the given data is wrong.arrow_forwardMark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of company speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to figure out which factor drives more demand for its particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 12 years and was reduced to the data that follow: YEAR 1 2 3 4 5 6 7 B 9 10 11 12 UNIT SALES (THOUSANDS) 398 698 898 y bar 1,304 1,163 1,195 898 1,200 982 1,235 875 811 PRICE $ PER UNIT 283 209 213 220 209 200 220 209 230 213 216 243 ADVERTISING ($000) 621 821 1,200 1,405 1,210 1,304 875 1,200 691 875 691 691 a. Perform a regression analysis based on these data using Excel. Note: Negative values should be indicated by a minus sign. Round your answers to 4 decimal places. Price advertisingarrow_forwardThe data in MEAPSINGLE were used to estimate the following equations relating school-level performance on a fourth-grade math test to socioeconomic characteristics of students attending school. The variable free,arrow_forward
- The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs = 247733.3 +(43.2000) x Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, bo. if appropriate. Choose the correct answer below. OA. The value of by is the predicted overhead costs for 0 billable hours. OB. For each increase of 1 unit in overhead costs, the predicted billable hours are estimated to increase by bo OC. It is not appropriate to interpret by. because its value is the predicted…arrow_forwardPredictor (Constant) Agea Age 20-22 Age 23-25 Femaleb Race/Ethnicity Black Hispanic/Latino Asian American Other Lifetime Drug Use Marijuana Powder Cocaine Ecstasy Opioids Amphetamine Exposure to Usersd R² TABLE 3 Linear Regression Model Results Comparing Predictors of Stigmatization toward Users of Each Drug Marijuana Stigmatization b 3.13*** -0.05 -0.09 0.02 0.12 0.00 0.04 0.16† -0.56*** -0.06 -0.07 -0.14† -0.05 -0.09*** 0.36 (SE) (0.08) (0.05) (0.07) (0.04) (0.07) (0.06) (0.06) (0.08) (0.05) (0.07) (0.08) (0.07) (0.07) (0.01) Powder Cocaine Stigmatization b 3.23*** -0.12+ -0.21* -0.01 0.05 -0.11 -0.01 0.14 -0.29*** -0.17 -0.11 -0.14 0.10 -0.06*** 0.18 (SE) (0.07) (0.05) (0.08) (0.05) (0.08) (0.07) (0.07) (0.10) (0.06) (0.09) (0.09) (0.08) (0.09) (0.01) Ecstasy Stigmatization b 3.14*** -0.11 -0.20* -0.01 0.05 -0.04 0.01 0.16 -0.36*** -0.12 -0.19+ -0.11 0.05 -0.05*** 0.16 (SE) (0.07) (0.05) (0.08) (0.05) (0.08) (0.07) (0.07) (0.10) (0.06) (0.09) (0.10) (0.09) (0.09) (0.01) Note;…arrow_forwardPlease write the solution and answer. Thank you!arrow_forward
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