Simple Regression. The Environmental Controls Corporation (ECC) is a multinational manufacturer of materials-handling, accessory, and control equipment.
Question:
A. Calculate the mean, median, range, and standard deviation for output and each cost category variable.
B. Describe each cost category as fixed or variable based upon the following simple regression results where cost is the dependent Y variable and output is the independent X variable.
The first simple regression equation is
Cost1 = $13,123 $0.30 Output
Predictor Coef Stdev t ratio p
Constant 13123 2635 4.98 0.000
Output 0.297 2.285 0.13 0.899
SEE = $4,871 R2 = 0.2 percent = 0.0 percent F statistic = 0.02 (p = 0.899)
The second simple regression equation is
Cost2 = $8,455 + $7.40 Output
Predictor Coef Stdev t ratio p
Constant 8455 1550 5.45 0.000
Output 7.397 1.345 5.50 0.000
SEE = $2,866 R2 = 75.2 percent = 72.7 percent F statistic = 30.26 (p = 0.000)
The third simple regression equation is:
Cost3 = $662 + $12.7 Output
Predictor Coef Stdev t Ratio p
Constant 661.5 488.4 1.35 0.205
Output 12.7298 0.4236 30.05 0.000
SEE = $902.8 R2 = 98.9 percent = 98.8 percent F statistic = 903.1 (p = 0.000)
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