Using the data provided in E6-32A, 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-squared (use the output from the Excel regression).
3. Predict the total laboratory overhead for the month if 3,100 tests are performed.

Data From E6-32A:-

The manager of the main laboratory facility at Elmhurst Health Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed.
The lab manager collected the following data for the first seven months of the year:

123456789DEFAULTS A B SUMMARY OUTPUT Regression Statistics Standard Error Observations C D D E Multiple R 0878214 R Square 0.77126 Adjusted R Square 0.725512 3156338706 7 df SS MS F 1 167956201.28 167956201.28 16.858885 5 49812370.15. 9962474.03 ANOVA 10 Regression 11 Residual Total 6 217768571.43 3187.94 6.84 Standard Error 16 Intercept 17 X Variable 1 Coefficients L Significance F 0.009301 G tStat P-value Lower 95% Upper 5092.169 0.626 0.559 -9901.898 1.666 4.106 0.009 2.558 95% 16277.778 11.123