Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. part 2: cameron company is interested in establish

Part 2: Cameron Company is interested in establishing the relationship between utility costs and machine hours. Data...

Free

80.2K

Verified Solution

Question

Accounting

Part 2: Cameron Company is interested inestablishing the relationship between utility costs and machinehours. Data has been collected and a regression analysis preparedusing Excel. The monthly data and the regression output follow:

MonthMACHINE HOURSELECTRICITY COSTS
JAN325022080
FEB377025200
MAR247016200
APR403027600
MAY494033900
JUN429026400
JUL533029700
AUG455027300
SEP260018600
OCT481031200
NOV611037200
DEC546033300



Required:
a. Using Excel, perform a regression analysis on the above data andgenerate a summary output.  

b. What is the equation for utility costs using the regressionanalysis?

c. Prepare an estimate of utility costs for a month when 3,000machine hours are worked.


Answer & Explanation Solved by verified expert
4.3 Ratings (808 Votes)

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
SUMMARY OUTPUT
Regression Statistics
Multiple R                                                                                    0.96538
R Square                                                                                    0.93197
Adjusted R Square                                                                                    0.92516
Standard Error                                                                             1,710.21088
Observations                                                                                        12.00
ANOVA
df SS MS F Significance F
Regression                                                                                           1.00 400,652,987.60 400,652,987.60 136.983752100    0.000000369
Residual                                                                                        10.00     29,248,212.40       2,924,821.24
Total                                                                                        11.00 429,901,200.00
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept                                                                        4,472.2547160 2,019.3896880           2.2146566           0.0511556     -27.2258867 8,971.7353190 -27.2258867 8,971.7353190
Machine Hours (x)                                                                                5.3286755           0.4552865         11.7040058           0.0000004        4.3142340         6.3431170      4.3142340         6.3431170
(b) The regression equation is y = 4472.25 + 5.3287x
(c)   When x = 3000, y = 4472.25 + 5.3287(3000) = 20458.35

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

White Diamond Flour Company manufactures flour by a series ofthree processes, beginning with wheat...

Accounting
Q

Vocabulary: write the definition of the following words capital letters and give a synonymous for each...

Electrical Engineering
Q

Identify at least three cash flow model inputs that are significantly stochastic in your opinion. Define...

Advance Math
Q

What role has the Securities and Exchange Commission played in setting accounting standards? Contrast its role...

Accounting
Q

You are given a number of 27 resistors each capable of dissipating only 2 9...

Physics
Q

On a scientific or graphing calculator, approximate the following value.In 0.9090

Basic Math
Q

g x 32x and f x x 1 Solve for x such that g x...

Calculus
Q

a Estimate the value of lim x x 5 x by graphing the function f...

Calculus
Q

Hakeem, one of your firms clients, is a shareholder in Cedar Corporation. Cedar Corporation has...

Accounting
Q

Alliance Inc, in 2020, purchased machinery for $800000. In addition, It received dividends of $30000...

Accounting
Q

This company records inventory purchases at standard cost and also records purchase price variances. Prepare...

Accounting
Q

ABC Corporation processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The...

Accounting