Question

Q1: The managing director of a consulting group has the following monthly data on total overhead costs and professional labor hours to bill to clients
Overhead Costs
$365,000 $400,000 $430,000 $477,000 $560,000 $587,000
Billable Hours
3,000 4,000 5,000 6,000 7,000 8,000
A) Develop a trendline to identify the relationship between billable hours and overhead cost
B) Interpret the coefficients of your regression model. Specifically, what does the fixed component of model mean to the consulting firm?
C) If a special job require 1,000 billable hours that would contribute a margin of $38,000 before overheads was available, would the job be attractive ?

Q2: See solution attached for the question below it is the spreadsheet
Using the data in the Excel file Credit Card Spending, develop a multiple linear regression model for estimating the average credit card expenditure as a function of both the income and family size.
A) Predict the average expense of a family that has two members and an income of $188,000 per annum, and
B) Another that has three members and an income of $39,000 income per annum.

Describe in words what it is occuring?
I.e. describe method and use add-in excel to solve the problem. You may append the screen shots of menu utilizing the Add-In. Name the add-ins

Answer 1

Answer to first question only as per answering guidelines