ACCT 250
HOMEWORK CHAPTER 6B
059a73d36c66826db6c914ed71bfc5eb85bce284.xls
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P638
Month
Temp
Cost
January
31
760
February
41
629
March
43
543
April
44
410
May
46
275
June
50
233
July
53
220
August
60
210 High point
September
50
305
October
40
530
November
30
750
December
20
870 Low point
Max
60
Min
20
Cost
Driver
Slope
High
210
60
Low
870
20
Difference
(660)
40
(16.50)
Y = a + bX
210 = a + (16.50 * 60)
a=
1,200
a = 1,200
b=
(16.50)
Y = 1,200 + (16.50X)
Cost
Temp
Cost
January
10
1,035 Be careful, we're outside of the relevant range!
February
40
540
15
20
25
30
35
40
45
50
55
60
65

100
200
300
400
500
600
700
800
900
1,000
Antelope Park Amoco
Average Temperature
Utility Cost ($)
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HOMEWORK CHAPTER 6B
059a73d36c66826db6c914ed71bfc5eb85bce284.xls
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P656
Plant
TPD
Cost
Commerce, CA
360
59,369
Hudson Falls, NY
400
77,013
Layton, UT
420
50,405
Oxford Township, NJ
450
75,779
Savannah, GA
500
87,439
Poughkeepsie, NY
506
57,463
Panama City, FL
510
60,730
Ronkonkoma, NY
518
84,457
Okahuma, FL
528
88,119
Spokane, WA
800
152,902
Arlington, VA
975
127,021
Camden, NJ
1,050
163,395
York, PA
1,344
139,302
Bridgeport, CT
2,250
344,852
Chester, PA
2,688
448,073
SUMMARY OUTPUT
Estimated cost for Babylon, NY
$112,906 K
Regression Statistics
The regression exhibits a high Rsquare value, high Tstat and low Pvalue
Multiple R
0.98
for the independent variable.
However, the SE measure is relatively high
R Square
0.95
given the cost estimate for the Babylon, NY project which raises some
Adjusted R Square
0.95
concern.
In looking at the scattergraph, there is some concern that the
Standard Error
25458.32
data may not be linear, in which case linear regression may not be the best
Observations
15
approach to estimate future cost.
ANOVA
df
SS
MS
F
Significance F
Regression
1
###
###
267.11
0
Residual
13 8425640788.71
###
Total
14
###
Coefficients
Standard Error
t Stat
Pvalue
Lower 95%
Upper 95% Lower 95.0%Upper 95.0%
Intercept
5225.26
10780.4
0.48
0.64
28514.9
18064.38
28514.9
18064.38
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 Spring '08
 Rabe
 Regression Analysis, Decision Making, sales units, HOMEWORK CHAPTER 6B

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