The manager of the main laboratory facility at CitiHealth Center (from E6-57B) collects seven additional months of data after obtaining the regression results in the prior period. The number of tests performed and the total monthly overhead costs for the lab follows:

Use Excel to perform the requirements.
Requirements
1. Run a regression analysis.
2. Determine the lab's cost equation (use the output from the regression analysis you perform using Excel).
3. Determine the R-square using the Excel output you obtain. What does the lab's R-square indicate?
4. Predict the lab's total overhead costs for the month if 3,000 tests are performed.

Transcribed Image Text:

Number of Lab Total Laboratory Tests PerformedOverhead Costs Month August September October November December anuay February 3,050 2,800 3,600 3,800 4,200 2,200 3,950 S22,300 $22,100 $25,100 S26,700 $27,300 S20,300 $28,500