Question
In: Statistics and Probability
The following information on maintenance and repair costs and revenues for the last two years is...
The following information on maintenance and repair costs and revenues for the last two years is available from the accounting records at Arnie’s Arcade & Video Palace. Arnie has asked you to help him understand the relation between business volume and maintenance and repair cost.
|
Month |
Maintenance and Repair Cost ($000) |
Revenues ($000) |
|
July |
$2.31 |
$59.00 |
|
August |
3.28 |
53.00 |
|
September |
2.80 |
49.00 |
|
October |
2.21 |
65.00 |
|
November |
2.30 |
77.00 |
|
December |
1.14 |
105.00 |
|
January |
3.12 |
45.00 |
|
February |
3.16 |
51.00 |
|
March |
3.02 |
61.00 |
|
April |
2.98 |
63.00 |
|
May |
2.04 |
67.00 |
|
June |
1.78 |
79.00 |
|
July |
2.60 |
73.00 |
|
August |
2.02 |
67.00 |
|
September |
2.57 |
75.00 |
|
October |
2.38 |
77.00 |
|
November |
1.43 |
87.00 |
|
December |
0.76 |
117.00 |
|
January |
2.58 |
61.00 |
|
February |
2.28 |
63.00 |
|
March |
1.69 |
83.00 |
|
April |
1.95 |
87.00 |
|
May |
1.95 |
73.00 |
|
June |
1.33 |
69.00 |
Using Excel, estimate a linear regression with maintenance and repair cost as the dependent variable and revenue as the independent variable. (Negative amounts should be indicated by a minus sign. Round "Multiple R, R square and Standard Error" to 7 decimal places, Intercept and Revenues to 4 decimal places.)
Regression Statistics
Multiple R: 0.8436280
R Square: 0.7117080
Standard Error:
Observations: 24
Coefficients
Intercept:
Revenues:
Solutions
Expert Solution
Hello Sir/ Mam
Your required regression analysis :
| Regression Statistics | |
| Multiple R | 0.8436276 |
| R Square | 0.7117075 |
| Standard Error | 0.3658095 |
| Observations | 24 |
| Coefficients | |
| Intercept | 4.6107 |
| Revenue | -0.0334 |
Original Excel Output :
| SUMMARY OUTPUT | ||||||||
| Regression Statistics | ||||||||
| Multiple R | 0.843627611 | |||||||
| R Square | 0.711707546 | |||||||
| Adjusted R Square | 0.698603343 | |||||||
| Standard Error | 0.365809542 | |||||||
| Observations | 24 | |||||||
| ANOVA | ||||||||
| df | SS | MS | F | Significance F | ||||
| Regression | 1 | 7.26776767 | 7.26776767 | 54.31139729 | 2.24256E-07 | |||
| Residual | 22 | 2.943965663 | 0.133816621 | |||||
| Total | 23 | 10.21173333 | ||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
| Intercept | 4.610680905 | 0.330675992 | 13.94319824 | 2.11634E-12 | 3.924900872 | 5.296460939 | 3.924900872 | 5.296460939 |
| X Variable 1 | -0.033397621 | 0.004531793 | -7.369626673 | 2.24256E-07 | -0.042795984 | -0.023999258 | -0.042795984 | -0.023999258 |
I hope this solves your doubt.
Do give a thumbs up if you find this helpful.
orchestra answered 3 years agoRelated Solutions
The following information on maintenance and repair costs and revenues for the last two years is...
The following information on maintenance and repair costs and
revenues for the last two years is available from the accounting
records at Arnie’s Arcade & Video Palace. Arnie has asked you
to help him understand the relation between business volume and
maintenance and repair cost.
Month
Maintenance and Repair Cost ($000)
Revenues ($000)
July
$1.86
$50.00
August
2.83
44.00
September
2.35
40.00
October
1.76
56.00
November
1.85
68.00
December
0.69
96.00
January
2.67
36.00
February
2.71
42.00
March
2.57
52.00...
The following information on maintenance and repair costs and revenues for the last two years is...
The following information on maintenance and repair costs and
revenues for the last two years is available from the accounting
records at Arnie’s Arcade & Video Palace. Arnie has asked you
to help him understand the relation between business volume and
maintenance and repair cost.
Month
Maintenance and Repair Cost ($000)
Revenues ($000)
July
$1.66
$46.00
August
2.63
40.00
September
2.15
36.00
October
1.56
52.00
November
1.65
64.00
December
0.49
92.00
January
2.47
32.00
February
2.51
38.00
March
2.37
48.00...
The following information on maintenance and repair costs and revenues for the last two years is...
The following
information on maintenance and repair costs and revenues for the
last two years is available from the accounting records at Arnie’s
Arcade & Video Palace. Arnie has asked you to help him
understand the relation between business volume and maintenance and
repair cost.
Month
Maintenance
and Repair Cost ($000)
Revenues
($000)
July
$2.01
$53.00
August
2.98
47.00
September
2.50
43.00
October
1.91
59.00
November
2.00
71.00
December
0.84
99.00
January
2.82
39.00
February
2.86
45.00
March
2.72
55.00...
Your friend owns a bicycle shop that derives most of its revenues from repair and maintenance...
Your friend owns a bicycle shop that derives most of its
revenues from repair and maintenance services. Her services range
from simple tune-ups to complex rebuilding of racing and mountain
bikes. She has four employees who work at the shop and she rents
the building that the business operates out of.
Respond to the following questions:
1.) List two specific major costs of operations that would be
considered to be direct costs, and explain your reasoning.
2.) The shop served...
A firm has the following information for the last two years – all amounts are in...
A firm has the following information for the last two years –
all amounts are in U.S. dollars.
This
year Last
year
2019 2018
Revenues 99,000 90,000
EBIT 33,000 30,000
EAT 16,500 15,000
EPS 1.80 1.50
This firm’s Degree of Financial Leverage is:
a.
1
b.
3
c.
2
d.
none of the above
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of
$160,000 a year. Variable costs will be $50,000, and rental costs
for the shop are $30,000 a year. Depreciation on the repair tools
will be $10,000.
a. Prepare an income statement for the shop
based on these estimates. The tax rate is 20%.
Dollars in minus dollars out.
Adjusted accounting profits.
Add back depreciation tax shield.
b. Calculate the operating cash flow for the
repair shop using the three methods...
The owner of a bicycle repair shop forecasts revenues of $180,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of
$180,000 a year. Variable costs will be $55,000 and rental costs
for the shop are $35000 a year. Depreciation on the repair tools
will be $15000
a. Prepare an income statement for the shop based on these
estimates. The tax rate is 20%
b. Calculate the Operating cash flow for the repair shop using
three methods given below
dollars in minus dollars out
adjusted accounting profits
add back depreciation tax...
The owner of a bicycle repair shop forecasts revenues of $200,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of
$200,000 a year. Variable costs will be $60,000, and rental costs
for the shop are $40,000 a year. Depreciation on the repair tools
will be $20,000.
b. Calculate the operating cash flow for the
repair shop using the three methods given below:
Now calculate the operating cash
flow.
Dollars in minus dollars out.
Adjusted accounting profits.
Add back depreciation tax shield.
The owner of a bicycle repair shop forecasts revenues of $224,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of
$224,000 a year. Variable costs will be $66,000, and rental costs
for the shop are $46,000 a year. Depreciation on the repair tools
will be $26,000. Prepare an income statement for the shop based on
these estimates. The tax rate is 40%. Calculate operating cash flow
for the year by using all three methods: (a) Dollars in minus
dollars out; (b) Adjusted accounting profits; and (c) Add back
depreciation tax...
The owner of a bicycle repair shop forecasts revenues of $236,000 a year. Variable costs will...
The owner of a bicycle repair shop forecasts revenues of
$236,000 a year. Variable costs will be $69,000, and rental costs
for the shop are $49,000 a year. Depreciation on the repair tools
will be $29,000. The tax rate is 40%.
a.
Calculate operating cash flow for the year by using all three
methods: (a) adjusted accounting profits; (b) cash inflow/cash
outflow analysis; and (c) the depreciation tax shield approach.
Method
Operating Cash Flow
Adjusted accounting profits
$
Cash inflow/cash...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
- QUESTION 4 Discuss the sanctity of life versus the quality of life debate as presented by...
- 0.560 g He, 20.482 g F2, and 13.960 g Ar are placed in a 18.4-L container...
- Let X ∼ Pois(4), Y ∼ Pois(12), U ∼ Pois(3) be independent random variables. a) What...
ADVERTISEMENT