E 33 111 ec| T Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtle Em Em Paragraph Styles Regression Analysis Name Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow: Machine Hours 480 320 400 300 500 Month January February March April May June July August September October November December Maintenance Cost $4,200 $3,000 $3,600 $2,820 $4,350 $2,960 $3,030 I $4.470 $4,260 $4,050 $3.300 S3.160 320 520 470 350 1340 1. Run a Regression Analysis on the information given. 2. What is the cost equation you would use given the outcome of the regression analysis? 3. Using the cost equation in #2, what would be the Predicted Cost at 400 hours of activity? 4. Given your answer in #3 at 400 hours of activity and using the Standard error of estimate, what is the confidence range that management can expect total costs to be in at the 400 hour activity level