The following information on maintenance and repair costs and revenues for the last two years is available
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Question:
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade . Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.
Month | Maintenance and Repair Cost ($000) | Revenues ($000) |
July | $2.26 | $58.00 |
August | 3.23 | 52.00 |
September | 2.75 | 48.00 |
October | 2.16 | 64.00 |
November | 2.25 | 76.00 |
December | 1.09 | 104.00 |
January | 3.07 | 44.00 |
February | 3.11 | 50.00 |
March | 2.97 | 60.00 |
April | 2.93 | 62.00 |
May | 1.99 | 66.00 |
June | 1.73 | 78.00 |
July | 2.55 | 72.00 |
August | 1.97 | 66.00 |
September | 2.52 | 74.00 |
October | 2.33 | 76.00 |
November | 1.38 | 86.00 |
December | 0.71 | 116.00 |
January | 2.53 | 60.00 |
February | 2.23 | 62.00 |
March | 1.64 | 82.00 |
April | 1.90 | 86.00 |
May | 1.90 | 72.00 |
June | 1.36 | 68.00 |
Required:
Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R square and Standard Error" to 7 decimal places, Intercept and Revenues to 4 decimal places.)
Multiple R-
R Square-
Standard Error-
observations-
intercept-
revenue-
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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