Thane Company is interested in establishing the relationshipbetween electricity costs and machine hours. Data have beencollected and a regression analysis prepared using Excel. Themonthly data and the regression output follow: Month Machine HoursElectricity Costs January 3,000 $ 18,650 February 3,400 $ 21,500March 2,400 $ 13,750 April 3,600 $ 23,500 May 4,300 $ 28,500 June3,800 $ 22,500 July 4,600 $ 25,000 August 4,000 $ 23,000 September2,500 $ 16,000 October 4,200 $ 26,500 November 5,600 $ 31,500December 5,200 $ 28,000 Summary Output Regression StatisticsMultiple R 0.952 R Square 0.906 Adjusted R2 0.897 Standard Error1,676.51 Observations 12.00 Coefficients Standard Error t StatP-value Lower 95% Upper 95% Intercept 3,639.33 2,048.60 1.78 0.11(925.25) 8,203.90 Machine Hours 5.04 0.51 9.83 0.00 3.89 6.18 Basedon the results of the regression analysis, the estimate ofelectricity costs in a month with 2,700 machine hours would be:(Round to the nearest whole dollar. Your answer may be different bya few dollars due to rounding of the regression coefficients.Choose the answer closest to your calculation.)
