The manager of the main laboratory facility at Rosedale Health Center (from E6-50B) 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 using data from August through February.
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 2,800 tests are performed.

Transcribed Image Text:

Number of Lab Tests Total Laboratory Month Performed Overhead Costs $24,250 August . September . October November December 2,900 3,200 4,050 4,200 4,100 $26,100 $30,200 $33,500 $31,400 2,650 3,350 $20,500 January $27,750 February