The manager of the main laboratory facility at MetroFit Center (from E6-49B) 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 areperformed.

Transcribed Image Text:

Number of Lab Tests Performecd 3,050 2,800 3,600 3,800 4,200 2,200 3,950 Total Laboratory Month August September October November December January February Overhead Costs $22,300 $22,100 $25,100 $26,700 $27,300 $20,300 $28,500