Excel Cost Estimation Project

Assume the following data

Month	Machine Hours (hrs.)	Maintenance Costs ($)
1	1,330	102,663
2	1,400	103,663
3	1,500	108,663
4	1,470	108,663
5	1,620	116,663
6	1,690	115,663
7	1,490	107,663
8	1,310	102,663
9	1,450	106,663
10	1,580	113,663
11	1,300	100,663
12	1,600	113,663
13	1,650	114,663
14	1,440	109,663
15	1,340	102,663
16	1,670	114,663
17	1,480	106,663
18	1,360	103,663
19	1,340	103,663
20	1,540	112,663

Assume that the following relationship holds:

Maintenance Costs = (v * Machine Hours) + f

REQUIRED

Estimate the values of v and f and the cost equation, using,

the High-Low Method, and

the Linear Regression method.

Make sure to report

the values of v and f;

a scatter plot of the data points, and

the adjusted R-square; explain what the adjusted R-square means.

The cost equation in the form of Y = vx + f, substituting the values for v and f from the regression output.

YOUR SUBMISSION MUST BE IN EXCEL. ONE WORKBOOK, WITH A WORKSHEET FOR EACH ANALYSIS (i.e., High-Low Method and Regression Analysis respectively). The regression analysis must include the output from the Analysis Datapak similar to Exhibit 6-15 on page 328.