E6-32A Using regression analysis output to predict overhead for a hospital laboratory (Learning Objective 5)

Using the data provided in E6-30A, the laboratory manager performed a regression analysis to predict total laboratory overhead costs. The output generated by Excel is as follows:

Requirements 1. Determine the lab’s cost equation (use the output from the Excel regression).
2. Determine the R-square (use the output from the Excel regression).
3. Predict the total laboratory overhead for the month if 2,800 tests are performed.

A D G 1 2 3 SUMMARY OUTPUT Regression Statistics Multiple R 0.92398 4 R Square 5 Adjusted R Square 6 Standard Error 7 Observations 0.853738 0.824486 2176.878742 7 8 ANOVA 9 df SS 10 Regression 1 138303137.57 138303137.57 MS F 29.185259 Significance F 0.002937 11 Residual Total 12345678 5 23694005.29 4738801.058 6 161997 142.86 Standard Coefficients Error t Stat P-value Lower 95% 10637.34 2932.412 3.628 0.015 3099.339 4.94 0.914 5.402 0.003 2.589 Upper 95% 18175.349 7.289 16 Intercept 17 X Variable 1