Using the data provided in E6-29A, the laboratory manager performed a regression analysis to predict total laboratory overhead costs. The output generated by Excel is as follows:

Requirements
1. Determine the lab's cost equation (use the output from the Excel regression).
2. Determine the R-square (use the output from the Excel regression).
3. Predict the total laboratory overhead for the month if 3,100 tests are performed.

Transcribed Image Text:

SUMMARY OUTPUT Regression Statistics Multiple R 4 R Square 5 Adjusted R Square Standard Error Observations ANOVA 0.878214 0.77126 0.725512 3156.338706 df SS 1 167956201.28 167956201.28 Significance F MS 10 Regression Residual Total 16.858885 0.009301 5 49812370.15 9962474.03 11 6 217768571.43 12 13 Lower 95% -9901.898 2.558 Standard Error Upper 14 t Stat 0.626 4.106 Coefficients 3187.94 P-value 15 95% 16 Intercept 17 X Variable 1 0.559 0.009 16277.778 5092.169 6.84 1.666 11.123 18 Number of Lab Tests Total Laboratory Overhead Costs Month January. February. March April. May . Performed 3,000 2,850 3,400 3,700 3,900 1,900 2,050 $21,900 $20,600 $28,900 $31,000 $28,000 June $20,200 July.. $14,000