Month | Machine Hours (hrs.) | Maintenance Costs ($) | 1 | 1,330 | 102,694 | 2 | 1,400 | 103,694 | 3 | 1,500 | 108,694 | 4 | 1,470 | 108,694 | 5 | 1,620 | 116,694 | 6 | 1,690 | 115,694 | 7 | 1,490 | 107,694 | 8 | 1,310 | 102,694 | 9 | 1,450 | 106,694 | 10 | 1,580 | 113,694 | 11 | 1,300 | 100,694 | 12 | 1,600 | 113,694 | 13 | 1,650 | 114,694 | 14 | 1,440 | 109,694 | 15 | 1,340 | 102,694 | 16 | 1,670 | 114,694 | 17 | 1,480 | 106,694 | 18 | 1,360 | 103,694 | 19 | 1,340 | 103,694 | 20 | 1,540 | 112,694 |
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Assume that the following relationship holds:
Maintenance Costs = (v * Machine Hours) + f
REQUIRED
Estimate the values of v and f and the cost equation, using,
1. The Linear Regression method.
Note, to use the linear regression method, you MUST use theMicrosoft Excel program.
Make sure to report
1. The values of v and f;
2. A scatter plot of the data points, and
3. The adjusted R-square; explain what the adjustedR-square means.
4. The cost equation in the form of Y = vx + f,substituting the values for v and f from the regressionoutput.
YOUR SUBMISSION MUST BE IN EXCEL.
