Form groups of two or more students to complete the
Form groups of two or more students to complete the
Form groups of two or more students to complete the following requirements:
REQUIRED
1. Given your findings in Problem 10-28, should Hanks use multiple regression analysis to better understand the cost drivers of overhead costs? Explain your answer.
2. Hanks decides that the simple regression analysis in Problem 10-28 should be extended to a multiple regression analysis. She finds the following result:
♦ Regression 3. Overhead costs = a + (b, X number of academic programs) + (b2 X number of enrolled students)
The coefficient of correlation between number of academic programs and number of students is 0.60. Use the format in Exhibit 10-13 to evaluate the multiple regression model. Should Hanks choose the multiple regression model over the two simple regression models of Problem 10-28?
3. How might the president of Eastern University use these regression results to manage overhead costs?