Required Information

Problem $5$A$-6($Algo$)$ Least$-5$quares Regresslon; Scattergraph; Comparison of Actlvity Bases $[$LO$5-11]$

The Hard Rock. Mining Campsny la developing cost farmulas for management planning and declaion$-$making purposes.

The compony's coat onslyst has concluded thot utilties cost is o mixed cost ond he is stempting to find $s$ bsse that

carrelates with the cost. The controller has suggested thst tona mined might be a good bose to use in deve oping o cost

formuls. The production superintendent diasgress; she thinks thet direct abor$-$hours would be s better bose. The coat

anslyat has decided to try both bosses snd has sasembled the following informstanc

Problem $5$A$-6$ Part $1($Algo$)$

Requlred:

T$-$s$.$ Using tons mined ss the independent vsriable, prepsre s scsttergreph thst pl ats tans mined on the horizantsl sxis snd utlit es cast

an the vertical sxis.

Instructions:

On the graph below, use the polnt tool $($Year $1-1$st quarter$)$ to plot tons mlined on the horizontel axls and utilities cost on the

Vertical sxis.

$2$ Repeat the same process for the plotter tools $($Year $1-2$nd quarter to Year $2-4$th quarter$).$

To enter exact coordinates, click on the point and enter the values of $x$ and $y.$

To $4.$ To remove o point from the groph, elick on the polnt and select delete optlon.

T$-$b$.$ Using the lesst$-$squeres regressian method, estimete the vorioble utilties coat per ton mined and the tatal fixed utilities coat per

quarter. Express these estimstes in the form $Y=0+bx.($Round the Vorioble cost per unit to $2$ declmal ploces and Fixed Cost to the

nearest whole dollsr emount.$)$