E6-51B Using regression analysis output to predict overhead for a hospital laboratory (Learning Objective 5)

Using the data provided in E6-49B, 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 3,000 tests are performed.

1 C D E G SUMMARY OUTPUT 78GO=2245678 6 Standard Error Observations ANOVA Regression Statistics 2 3 Multiple R 4 R Square 5 Adjusted R Square 0.838886 0.70373 0.644476 3489.925912 7 9 df SS 10 Regression 11 12 Residual Total 13 14 1 144650657.06 144650657.06 5 60897914.37 12179582.873 6 205548571.43 Standard MS F 11.876487 Significance F 0.018312 15 Coefficients Error 16 Intercept 5627.61 5975.992 t Stat 0.942 P-value Lower 95% 0.390 -9734.165 Upper 95% 20989.389 17 X Variable 1 6.21 1.801 3.446 0.018 1.577 1.577 18